The ESG factor: scenarios and perspectives: Observatory on the competitiveness of firms in Marche, Abruzzo and Molise

This paper investigates the integration of Environmental, Social, and Governance (ESG) criteria among firms in the Italian regions of Marche, Abruzzo, and Molise, based on survey data from 2023 and 2024. The findings reveal a marked improvement in governance practices, particularly in board composition, gender diversity, and ESG-linked executive compensation. Environmental and social dimensions show more modest progress, with persistent gaps in certifications and structured initiatives. Larger and more established firms demonstrate higher ESG maturity, though small and medium enterprises are rapidly catching up. Regionally, Abruzzo leads in ESG advancement, while Molise lags, especially in governance. A positive correlation emerges between ESG performance and revenue growth, suggesting that sustainability is increasingly perceived as a strategic asset rather than a regulatory burden. Despite encouraging trends, challenges remain, including limited awareness of financial benefits and resource constraints among smaller firms. The study highlights the need for targeted policy support to foster a more inclusive and effective ESG transition.