Emission Reduction Targets Between Strategy and Executive Compensation: Evidence on Symbolic and Substantive Adoption From German Listed Firms
研究了德国上市公司可持续发展战略中的减排目标如何反映在高管薪酬中，发现战略层面目标披露增加，但薪酬整合仍偏象征性，需警惕漂绿风险。
ABSTRACT Firms increasingly commit to climate targets yet doubts remain about whether such pledges translate into substantive corporate governance or remain symbolic. The study examines how emission reduction targets (ERTs) in sustainability strategies are reflected in compensation among German listed firms. Drawing on agency, legitimacy, and institutional theory, we examine how ERT characteristics distinguish between symbolic and substantive adoption. Findings show both progress and gaps. The share of firms disclosing ERTs in strategies rose from 68% to 89%, while integration into pay increased from 16% to 51%. Strategies often feature quantitative and absolute targets, whereas compensation schemes rely on qualitative, relative, and activity‐based targets with limited emission scope coverage. Since 2023, long‐term incentives (LTIs) increasingly include quantitative targets, signaling substantive integration, whereas short‐term incentives (STIs) remain rather symbolic. The study demonstrates that substantive and symbolic adoption co‐occur, underscoring the need to close disclosure–implementation gaps to prevent greenwashing.