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Nearly all FtseMib companies (approximately 92.5%) now have a dedicated committee for sustainability issues.

A decade ago, just a quarter of individuals were conscious about sustainability. Yet, there's a discrepancy: only one-sixth of advisors possess expertise in sustainability, as per findings from the Sustainability Makers Observatory.

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Nearly all companies listed on the FtseMib maintain a sustainability panel
Nearly all companies listed on the FtseMib maintain a sustainability panel

Nearly all FtseMib companies (approximately 92.5%) now have a dedicated committee for sustainability issues.

Italy Leads in Sustainability Governance, but Skills Gap Remains

Sustainability is no longer just a risk management issue for Italian companies; it's an opportunity, as demonstrated by the increasing number of exclusive sustainability committees in corporate governance. According to the "Governance of Sustainability" Observatory, established in 2013, over 92.5% of Ftse-Mib listed companies now have a sustainability committee on their board of directors.

This trend places Italy, along with France, at the forefront of the spread of internal committees with sustainability-related responsibilities. In fact, the percentage of companies with an exclusive socio-environmental committee has risen significantly, from 28.6% in 2020 to 45.9% in 2022, representing a +17.3% increase.

However, the situation is not without challenges. Matteo Pedrini, scientific director of Sustainability Makers, describes the situation as "alarming" due to the urgency to integrate sustainability into businesses. An analysis of over 2,500 CVs of board members revealed a skills gap in Italy, with only around 15% of board members competent in sustainability on average.

Boards must evolve to include expertise in ESG, climate risk, and emerging trends to effectively oversee sustainability strategies and risks. Embedding sustainability metrics into incentives further requires boards to develop or recruit these specialized skills to translate sustainability commitments into measurable corporate performance.

The Observatory on Governance, a relevant entity in this field, has expanded its analysis this year beyond European borders, analyzing over 1,400 listed companies worldwide. The Observatory's work underscores the global trend of increased emphasis on corporate governance with sustainability as a strategic, though not yet fully integrated, priority.

Despite these advancements, sustainability integration and board competencies remain a work in progress amid growing complexity and regulatory expectations. The corporate governance landscape is evolving, but there is still much work to be done to ensure authentic, long-term value for businesses and the environment.

[1] [Source] [2] [Source] [3] [Source] [4] [Source] [5] [Source]

  1. In light of the global trend, there's a need for Italian businesses in the finance and other industry sectors to evolve their boards to include expertise in ESG, climate risk, and emerging trends, as this is crucial for effectively overseeing sustainability strategies and risks.
  2. To translate their sustainability commitments into measurable corporate performance, boards of Italian businesses need to develop or recruit specialized skills in sustainability, a task that becomes increasingly important as sustainability metrics are being embedded into incentives.

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