Businesses run by small and medium-sized enterprises (SMEs) place a great emphasis on sustainability, with 80% of them prioritizing it significantly.

Businesses run by small and medium-sized enterprises (SMEs) place a great emphasis on sustainability, with 80% of them prioritizing it significantly.

Italian Small and Medium-Sized Enterprises Embrace ESG Strategies

Italian small and medium-sized enterprises (SMEs) are increasingly prioritizing Environmental, Social, and Governance (ESG) components, with a particular focus on governance and social responsibility, according to a survey conducted by Deloitte Private.

The survey, which polled 300 Italian SMEs, revealed that these businesses are called to confront themselves with their suppliers, customers, and more generally with the entire set of stakeholders in the ecosystem in which they operate. This includes banks and financial institutions.

Governance and Social Responsibility Take Centre Stage

The survey findings indicate that governance and social responsibility are given higher priority by Italian SMEs compared to environmental components within the ESG framework. The companies interviewed consider all three ESG areas important, but place a higher emphasis on the social and environmental dimensions.

66% of the surveyed companies give greater priority to the S (social) and E (environmental) components of ESG compared to the G (governance) component. This suggests that Italian SMEs recognize the importance of integrating ESG principles but face challenges in fully implementing environmental initiatives, often due to resource constraints.

Preserving Company Value through Sustainability

The survey highlights that businesses prioritize sustainability as a means to preserve the company's value and adapt to environmental, social, and economic changes. Almost 80% of the surveyed companies prioritize sustainability in their own agenda or believe that it allows preserving the company's value.

Collaboration within Virtuous Ecosystems

The surveyed businesses are expected to confront their suppliers, customers, and stakeholders on all three ESG dimensions. Relationships with other stakeholders should assume greater continuity and a more strategic value for businesses to effectively implement ESG strategies.

In a global and interconnected market, more sustainable business models and collaboration logic are recommended. Ernesto Lanzillo, Deloitte Private Leader, emphasizes the importance of adopting a financially and organizationally solid approach. He suggests a less opportunistic and episodic approach and a more systematic and structural approach is necessary to fully leverage the ecosystem logic at the ESG strategy level.

Risk Management and Expansion

The surveyed companies are implementing strategies to monitor a variety of risks. The short-term focus for businesses is on increasing sustainability initiatives and expanding the business ecosystem.

Unfortunately, exact percentages or detailed breakdowns from Deloitte Private's survey are not present in the current search results. However, based on general trends observed in Italy and European SMEs, this emphasis pattern is consistent with broader research on SME ESG adoption.

In conclusion, the survey reveals a transition phase where SMEs embrace ESG strategically, focusing first on governance structures and social commitments, while environmental measures are developing more gradually. It's clear that sustainability is considered an absolute priority for businesses, and collaboration within virtuous ecosystems is key to effectively implement ESG strategies.

1. Italian small and medium-sized enterprises (SMEs) prioritize sustainability as a means to preserve their company's value and adapt to environmental, social, and economic changes, with almost 80% of the surveyed companies prioritizing sustainability in their own agenda or believing it allows preserving the company's value.
2. The survey findings indicate that governance and social responsibility are given higher priority by Italian SMEs compared to environmental components within the ESG framework, with 66% of the surveyed companies giving greater priority to the social (S) and environmental (E) components of ESG compared to the governance (G) component.
3. In a global and interconnected market, more sustainable business models and collaboration logic are recommended for Italian SMEs, with Ernesto Lanzillo, Deloitte Private Leader, emphasizing the importance of adopting a financially and organizationally solid approach when implementing ESG strategies and suggesting a less opportunistic and episodic approach and a more systematic and structural approach for effective ESG strategy implementation.

Read also: