Foreign management finds Italy less appealing
In a revealing survey of over 500 Italian managers living and working abroad, Italian companies were found to be less attentive to sustainability compared to their foreign counterparts. The survey, conducted by AstraRicerche for Manageritalia and Kilpatrick, investigated the core dimensions of social, economic, and environmental sustainability.
Italian companies and foreign companies both place significant focus on environmental sustainability and employee well-being, but there are nuanced differences in emphasis and implementation shaped by their contexts.
Italian companies typically integrate strong commitments to environmental sustainability, including decarbonization, circular economy, and biodiversity protection, supported by concrete frameworks and partnerships. For example, Leonardo, a leading Italian firm, has a detailed sustainability roadmap targeting climate action and decarbonization validated by the Science Based Targets initiative. Intesa Sanpaolo, an Italian bank, treats sustainability as a competitive advantage with a solid ESG commitment, including CO₂ mitigation programs and progressive decarbonization targets in high-emission sectors. UniCredit partners with Italy’s FAI foundation to protect cultural and environmental heritage, with explicit commitments to climate change mitigation, water footprint reduction, and biodiversity protection.
In contrast, foreign companies operating in or compared to Italian contexts often highlight sustainability through global standards and technology, with a focus on carbon reduction, employee empowerment, and innovation. CPM International, although global, emphasizes environmental responsibility through operational changes like shifting to hybrid/electric vehicle fleets and encouraging sustainable travel among employees.
However, foreign companies can face challenges in credibility regarding social and environmental claims. Recent enforcement actions in Italy against foreign fashion brands (e.g., Shein and Giorgio Armani) for misleading environmental and social responsibility claims underline the scrutiny and expectation for transparency on sustainability and employee conditions regardless of origin.
In terms of employee well-being, there is almost five times as much attention paid abroad compared to Italy (71.8% vs. 15%). Regarding the well-being of people at work, there is a need for Italian companies to improve their attention to sustainability.
The survey results will be presented at the conference The Power of Sustainable Business in Milan, which is focused on the power of sustainable business. The analysis of sustainability in Italian companies is being presented today at the conference. The survey results also indicate a need for Italian companies to improve their attention to sustainability in social, economic, and environmental dimensions.
In essence, Italian companies show a comprehensive approach combining environmental goals with social and employee well-being, often validated by recognized standards and stakeholder engagement. Foreign companies may lead in operational sustainability innovations but sometimes encounter regulatory challenges in claims transparency, especially in sectors like fashion. Both recognize that sustainability and employee well-being are increasingly integral to competitiveness and social license to operate in Italy.
References:
- Leonardo's Sustainability Roadmap: Leonardo Sustainability
- Intesa Sanpaolo's ESG Commitment: Intesa Sanpaolo ESG
- UniCredit's Partnership with FAI Foundation: UniCredit FAI Foundation
- CPM International's Emphasis on Environmental Responsibility: CPM International
- Enforcement actions against foreign fashion brands in Italy: Reuters
Foreign companies prioritize sustainability through technological advancements and carbon reduction, while also focusing on employee empowerment and innovation. For instance, CPM International advocates for environmental responsibility through operational changes like adopting hybrid/electric vehicle fleets and encouraging sustainable travel among employees.
In contrast, Italian companies exhibit a more holistic approach to sustainability, integrating strong commitments to environmental goals alongside social and employee well-being. Companies like Leonardo, Intesa Sanpaolo, and UniCredit have detailed sustainability plans and partnerships that target climate action, biodiversity protection, and more, validated by recognized standards and stakeholder engagement.
