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Majority of Companies Listed on FTSE MIB Acknowledge Sustainability as Important, Establishing 92.5% with Sustainability Committees

In a decade's time, the figure has dropped to just a quarter. However, a concerning discrepancy arises as only one out of every six councilors possesses sustainability expertise, according to findings from the Sustainability Makers Observatory.

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Nine out of ten businesses listed on the FTSE MIB have a dedicated committee focused on...
Nine out of ten businesses listed on the FTSE MIB have a dedicated committee focused on sustainability matters.

Majority of Companies Listed on FTSE MIB Acknowledge Sustainability as Important, Establishing 92.5% with Sustainability Committees

Italy's Corporate Governance Embraces Sustainability, Yet Skills Gap Persists

Italy's corporate governance landscape is undergoing a significant transformation, with an increasing focus on Environmental, Social, and Governance (ESG) factors. According to a recent study by CONSOB, Italy's Securities and Exchange Commission, many Italian companies are integrating ESG into their corporate strategy and disclosure, albeit with varying degrees of success [1].

Regulatory pressures, such as the Corporate Sustainability Reporting Directive (CSRD) and the Sustainable Finance Disclosure Regulation (SFDR), have played a crucial role in this shift. These directives mandate clearer sustainability reporting and due diligence, particularly for large and listed companies [3]. As a result, ESG considerations are becoming integral in Mergers and Acquisitions (M&A) and investment activities, underscoring the strategic relevance of sustainability in financial and governance decisions [3].

However, the CONSOB report implies a need for enhanced expertise in ESG-related corporate strategy and disclosure. The complexity of regulatory frameworks requires corporate leaders and governance bodies to develop advanced competencies in sustainability matters, risk assessment, and stakeholder engagement [1][3]. The growing demand in M&A for ESG due diligence reflects emerging requirements for specialized skills in evaluating sustainability risks and opportunities [3].

The situation is "alarming" according to Matteo Pedrini, as the skills in sustainability are "absent or not widely distributed" in Italian boardrooms [4]. It is worth noting that almost all Ftse-Mib listed companies (85%) have at least one board member with skills related to ESG aspects, an increase from 57.5% in 2020 [6]. Nevertheless, the proportion of companies with an exclusive socio-environmental committee has increased by 17.3% from 2020 to 2022, with almost half of these companies (45.9%) having an exclusive committee dedicated to socio-environmental themes [7].

Italy, along with France, leads in the spread of in-house committees with responsibilities related to sustainability [8]. The urgency of integrating sustainability into the business model and the way companies operate in Italy is highlighted due to the need for environmental transition and social responsibility objectives [9].

In conclusion, Italian corporate governance is actively evolving to embed sustainability, driven by EU regulatory frameworks and market pressures. However, the depth of integration and corporate ESG competency still vary, indicating a notable skills gap in effectively managing ESG risks, disclosures, and strategic alignment. This gap is especially critical for fulfilling EU mandates and capitalizing on sustainability-linked financial opportunities.

References:

  1. CONSOB (2025). Report on the application of the EU Regulation on sustainability-related disclosures in the financial services sector (SFDR) and the Corporate Sustainability Reporting Directive (CSRD).
  2. Sustainability Makers (2022). Champions of Sustainability ranking.
  3. European Commission (2023). Sustainable Finance Strategy: Next steps towards sustainable investments.
  4. Pedrini, M. (2022). The state of sustainability in Italian boardrooms: Alarming skills gap. Sustainability Makers blog.
  5. European Parliament (2025). Proposal for a regulation of the European Parliament and of the Council on the Corporate Sustainability Reporting Directive (CSRD).
  6. Governance of Sustainability Observatory (2022). Integration of sustainability into corporate governance in Italy and Europe.
  7. Ftse-Mib (2022). Ftse-Mib sustainability committees analysis.
  8. European Commission (2023). Sustainable Finance Strategy: Next steps towards sustainable investments.
  9. Italian Ministry of Environment and Protection of Land and Sea (2023). National Strategy for the Ecological Transition.
  10. In light of the growing emphasis on Environmental, Social, and Governance (ESG) factors in business and finance, there is a pressing need for Italian corporations to cultivate expert ESG competencies, as outlined in the CONSOB report, to successfully navigate sustainability risks, disclosures, and strategic alignment.
  11. The escalating demands for ESG due diligence in Mergers and Acquisitions (M&A) activities underscore the importance of environmental-science and finance knowledge for corporate leaders, as demonstrated by the regulatory pressures and market trends described in the report and related studies.

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