Sustainability: more ambition in the company to regain people's trust

The year 2024 has been globally defined as the 'Year of Democracy': more than half of the world's population has been or will be called to the polls. In many countries, including Italy, the debate has focused on key issues such as economic and social support, environmental policies, and the role that business, politics and citizens must play to create a fairer and more equitable society. In particular, against a backdrop of global economic weakness and cost-of-living pressures, the investments required for the transition to carbon neutrality have sparked heated debate.
Yet, despite differing political views, Italians continue to expect concrete actions from businesses and governments to generate a positive and more meaningful impact on environmental, social and governance (ESG) issues. According to SEC Newgate's 'Global ESG Monitor', 78% of citizens in Italy say they are interested in these issues, which therefore continue to occupy a prominent position among the issues that are closest to their hearts. A trend that is unlikely to change in the near future.
The role of companies, in particular, is considered crucial in helping to drive the transition to a low-emission economy, as well as having a significant impact on people, given their ability to create jobs, facilitate social mobility and contribute to a more equitable society. It is no coincidence that 85% of Italians believe that companies should prioritise the impact of their decisions on the environment and society.
At the same time, there remains a widespread distrust of environmental, social and governance sustainability statements coming from both institutions and companies. In particular, only 55% believe that companies are actually doing something concrete to address these issues.

Companies, therefore, are under scrutiny. The vast majority of stakeholders expect companies to be drivers of change; therefore, failing to act boldly or be transparent about one's ESG plans and results carries significant reputational risk. Compliance with international reporting standards alone is not enough, as it certainly ensures regulatory compliance, but it does not express sufficient commitment to create a positive impact. Companies therefore need to go further, taking a strategic and ambitious approach to promote real and lasting change.To address this growing mistrust in ESG reporting, companies will need to initiate change from within and focus on those key areas where they can achieve real impact.

This certainly means reducing carbon emissions and any negative impact on the environment, but also promoting initiatives that benefit not only the environment, but also the communities in which they operate, and improving internal diversity, equity and inclusion standards. A clear and ambitious plan, with defined objectives and measurable results, is a precondition for a credible narrative and transparent reporting of one's progress, and for achieving a positive balance between social responsibility and financial performance.Companies that have defined their internal objectives and begun to make tangible changes will also be able to take further steps by collaborating with other companies, governments and civil society to address global issues, well beyond ESG issues alone. And this is precisely what is expected of a 'good' company today. A company that succeeds in integrating these elements not only improves its reputation and strengthens the trust of its stakeholders, but also creates a positive cultural impact within its own organisation and is distinctive and directional in its industry. Furthermore, by promoting change and telling their story in a transparent and credible way, companies can fuel a virtuous contagion of innovation and responsibility, actively contributing to social and environmental progress.In conclusion, companies that want to be leaders in ESG need to be authentic and ambitious in order to generate concrete and lasting impacts. Only in this way can they overcome public scepticism and contribute to building a more sustainable future
* Managing Director of SEC Newgate Italy