Read the attached article related to sustainability targets.  Some companies are tying management compensation to progress on environmental, social, and governance (ESG) goals.  While the article focuses on executive compenstation and ESG issues, reference also is made to capital budgeting (our topic this week).  

After reading the article, start a discussion post and comment on each of the following:

Do you think that including goals related to environmental, social and governance (ESG) as the basis for awarding stock compensation or bonuses is appropriate?  Explain your answer.  

Summarize the process for capital budgeting decisions as you understand them.  Specifically, what factors are used in capital budgeting systems to access potential projects? 

According to the article, for what types of ESG-related capital projects does candy maker Mars Inc. adjust its profitability requirements?

JOURNAL REPORTS: LEADERSHIP More Companies Link Executive Pay to Sustainability Targets How do you get management to make progress on social, environmental and governance goals? Make their compensation depend on it. %24 %24 %24 'It pushes us to think differently. says one executive whose bonus is linked to emissions-reduction targets. The overall focus of the organization has changed. PHOTO: JAMES YANG By Tatyana Shumsky June 24, 2019 8:35 am ET When Floris Fooij proposed a $1.7 million upgrade for the vitamin plant he oversees in New Jersey a few months ago, he did something he wouldn't have done in the past: He mapped out for the finance team how the upgrade would affect the firm's greenhouse-gas emissions. His employer, the Dutch life-sciences and specialty-materials maker Koninklijke DSM NV, in recent years had tied the bonuses of operational managers such as Mr. Fooij to corporate energy-efficiency and emissions-reduction targets. https://www.wsj.com/articles/more-companies-link-executive-pay-to-sustainability-targets-11561379745