1、ESG STUDYESG Factors in Management RemunerationMarket StudyIntroductionESG study-GermanyIn recent years,the integration of environmental,social,and governance(ESG)factors into business practices has become increasingly important for sustainable value creation and key for corporate long-term success.

2、Management remuneration is a critical means through which companies can influence organisational behaviour and performance investors,regulators and other stakeholders are clear that aligning management remuneration with ESG objectives is a must for listed companies from a German perspective.Our stud

3、y sheds light on the multifaceted relationship between ESG-related criteria and management remuneration.We explore the following questions:Which types of ESG-related criteria do we see in management remuneration in listed companies?How are ESG-related criteria utilised?In short-term or long-term inc

4、entives(or both)?As a standalone criterion or as a multiplier?Our findings are accompanied by an outline of the legal landscape and an overview of the expectations of proxy advisors,shareholders and other stakeholders.01 Framework02 Market and scope03 Underlying data04 ESG-related criteria used by l

5、isted companies05 Environmental,social,governance06 How listed companies use ESG-related criteria07 Summary and outlookFrameworkESG study-GermanyLegal landscapeArguments continue as to whether or not it is mandatory under the law to include sustainability aspects as a factor in management remunerati

6、on in Germany.Changes to the German Stock Corporation Act(as part of the implementation of the EUs Second Shareholder Rights Directive or SRD II)suggest that,at a minimum,ESG factors need to be taken into account.On the other hand,based on the explanatory notes of the legislative draft,it can be arg