ABSTRACT
Managing sustainability performance is an important component of companies’ efforts to generate enterprise value.
A growing body of research confirms this thesis, showing a positive relationship between sustainability performance and financial returns.
What began as a niche practice among values oriented and an effort to create a good reputation, improving own brand and positive impact while sacrificing financial returns, is now a mainstream practice where values and value have a direct and positive relationship.
ESG factors are becoming the almost of top mind for all companies and of necessity for all Small and Medium Sized Enterprises (SMEs).
All SMEs that want to maximize their ability to create market value and not only good reputation will need to develop a sustainable business strategy as opposed to a sustainability strategy. A sustainable business strategy and an ESG performance can reduce costs, improve workers productivity, mitigate risks potentials, create revenue-generating opportunities, can also impact cost of capital and contribute to success in the near, medium and long term.
But are Italian SMEs yet properly organized for this new challenge imposed by the market?
