Based on a research led by finance professor at HEC Paris Business School Matthias Efing, WirtschaftsWoche analyzes the integration of ESG criteria into executive compensation systems. While ESG goals are increasingly included in contracts, Efing highlights that binding goals represent only a small portion of variable compensation, suggesting that many companies prioritize appearance over substance. He notes that companies with a vested interest in climate action, such as energy providers, are more likely to set meaningful, binding ESG targets for their leadership.