Business ESG approach is on the rise
Business and sustainability: increasing ESG approach. 59%of Italian companies have an ESG committee, in line with 61 percent of global companies. The results of the research “Corporate Social Investment and ESG – Global Impact at Scale” by Dynamo Academy and SDA Bocconi Sustainability Lab, in its fifth edition, speak clearly: companies are acting in an organized way with respect to sustainability strategy. While 59% of companies have established an ESG/Sustainability Committee, in some sectors the percentages grow: 71% for healthcare, 69% for transportation, 68% for consumer goods and 65% manufacturing. In addition, 37% of companies have joined United Nations Global Compact (UNGC), which aims to encourage companies to adopt sustainable policies and make the results of actions taken public. 44% of the companies in the sample draft their own sustainability strategy and action plan, possibly making them public, with percentages rising in the transportation (69%), consumer goods (59%), and energy (55%) sectors. 67% of companies recall the Sustainable Development Goals (SDGs) in their strategy. “A model of active philanthropy that sees social organizations as active partners to be involved and supported, in order to co-create value and generate lasting change in the modus operandi,” is increasingly established in the sample companies making ESG investments. This phrase already present in previous editions of the research, which we have been carrying out with Dynamo for years, perfectly centers the trends found in the current edition. The goal, more generally, is to understand what are the greatest opportunities for companies to create sustainable value that is increasingly concrete, measurable and accountable. This is in line with the concept of transformative sustainability: in the current transition, companies are innovating their increasingly sustainable business models with an integrated approach to strategy in order to maximize the opportunities that can create value. We are on the right track but there is a long way to go yet and fast!” is the comment of Francesco Perrini, Associate Dean for Sustainability, DEI & ICE and Director of the Sustainability Lab at SDA Bocconi School of Management. This release broadens the scope from purely philanthropic action to sustainable action, and investigates community investment and the ESG approach of companies, with particular emphasis given to social sustainability. In the way it is structured, it allows for comparison with Global Impact at Scale, an analysis by the global CECP (Chief Executives for Corporate Purpose) network, of which Dynamo Academy is a partner and contributor, on corporate action in ESG and social investment issues globally.
“The international benchmark gives indications to Italian companies to increase impact in communities. One indication concerns the need for S reporting, both to find shared metrics and to enhance the actions put in place.” This is the comment of Serena Porcari, President and CEO Dynamo Academy. While 98 percent of the global sample uses ESG standards and metrics, in fact, 54% consider it challenging to measure S, compared to 10% with respect to G, 6% with respect to E, and 33% with respect to the 3 themes jointly. “The other relevant aspect that emerges from the benchmark,” Porcari continues, “is the opportunity to work on Diversity, Equity and Inclusion with concrete actions in companies.” The overview, in comparison with a global sample of companies, thus suggests trend topics for the future: investment towards internal stakeholders, the search for common metrics for S reporting, and the search for concreteness for Diversity, Equity and Inclusion actions.
This is what emerges from the research “Corporate Social Investment and ESG – Global Impact at Scale” by Dynamo Academy and SDA Bocconi Sustainability Lab, now in its fifth edition. From purely philanthropic action to sustainable action through investments in communities, with a focus on social sustainability
