The compensation of high-ranking corporate executives is being increasingly tied to environmental targets, but a lack of standardized data and disclosure is making the effectiveness of such goals difficult to track and may even be opening the way for some to game the system, governance experts warn.

Two-thirds of companies in the S&P/TSX 60 index use one or more environmental, social and governance (ESG) metrics in compensation plans for CEOs or other executive officers, according to a January 2023 study by law firm Fasken Martineau DuMoulin LLP. READ MORE