CAF-7 · Chapter 7 · Question 7 of 15
Which of the following is a classic example of a Key Performance Indicator (KPI) used to measure the 'Governance' aspect of ESG?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Executive compensation linked to sustainability targets
Explanation
Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. Linking executive pay to sustainability targets is a direct governance mechanism.
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