A majority of major Canadian corporations tie the compensation of their chief executives to ESG-driven metrics, according to a study by Toronto-based law firm Fasken, which analyzed statements by 82 public companies listed on the Toronto Stock Exchange.
Among companies listed on the TSX 60, an index of the 60 biggest companies on the exchange, 68% tie executive compensation to ESG metrics, while 100% of conglomerates and companies in the transportation/environmental services sector do the same.
While a majority of Canada’s biggest firms are using ESG metrics to set their executive compensation packages, for about half of them, ESG is lumped in with other metrics. Here are a few other key findings from the research:
- 83% of board directors have ESG experience.
- Sustainability Accounting Standards Board Standards (SASBS) are the most popular, with more than 80% of companies saying they use the SASBS framework.
- 58% of companies disclose ESG-related assurances.
