ESG-certified companies outperform competitors

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A company that adopts ESG principles is committed to reducing its environmental impact, respecting and promoting social rights, and acting with transparency, accountability and effective governance. ESG-certified companies can concretely demonstrate their commitment to stakeholders, customers, employees, local communities and investors. The process to obtain ESG certification starts with a customised, in-depth ESG screening that helps identify areas for improvement and strengths, and defines targeted corporate strategies.

As of September 2024, the movement of Italian B Corp exceeded 300 certified companies, an increase of 13% compared to the end of 2023. More than 30% of these companies operate in the manufacturing sector, followed by professional activities, communication services and trade. At the territorial level, the North-West accounts for 45.9% of B Corp, followed by the North-East (30.1%) and the Centre-South (24%). To celebrate this milestone, B Lab Italia presented research conducted by the Research Department of Intesa Sanpaolo, analysing the evolution of B Corp from 2019 to 2022. The study compared 210 B Corporations with a sample of 15,000 non-B Corporations, revealing that the former recorded a 32.4% average revenue growth, higher than the 19% growth of other companies. In addition, value added per employee increased from EUR 62,000 to EUR 69,000, while equity reached 35.4% of assets in 2022.

ESG certification enables companies to excel in the market and build a brand reputation based on shared values. It also facilitates access to sustainable financing and attracts investors who are increasingly interested in sustainability. Certification also helps improve risk management, preventing environmental or social problems, and avoiding reputational damage or legal sanctions. Adopting sustainable practices can result in tangible benefits, such as increased efficiency and reduced costs

Corporate sustainability can be communicated and certified in various ways, depending on the needs and objectives of the organisation. ESG certification and the sustainability report represent two distinct but complementary approaches that are useful for the Sustainability Manager. ESG certification is a formal, independent assessment of a company's environmental, social and governance practices. Issued by specialised third-party bodies, its purpose is to demonstrate to investors, customers and employees that the company meets high standards of sustainability. The Sustainability Report is a document detailing a company's performance in terms of sustainability. Usually published annually, it follows internationally recognised reporting guidelines and standards, such as those of the Global Reporting Initiative (GRI) or the Integrated Reporting (IR) framework.

Before embarking on the ESG certification process, the company must have a thorough understanding of ESG objectives and existing standards. For example, the standard ESRS E4 biodiversity and ecosystems, designed to ensure transparency and consistency in environmental, social and governance (ESG) reporting. ESG certifications are issued by independent organisations; internationally, there are several agencies offering this service, each with their own methodologies and standards. Among the most recognised are the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) and the International Integrated Reporting Council (IIRC). These organisations provide guidelines and tools to help companies improve their ESG performance.

The cited research also points out thatBCorps recognise the value of human capital to a greater extent, offering an average labour cost per employee of EUR 44,000, compared to EUR 39,000 for other companies. B Corporations show significant growth in all sectors, with a focus on innovation and sustainability. In particular, manufacturing B Corporations stand out for their internationalisation and investments in patents and environmental certifications. Anna Puccio, Managing Director of B Lab Italia, highlighted the pioneering role of B Corporations in the Italian entrepreneurial landscape, celebrating the surpassing of 300 active companies, employing over 28,000 people and generating a turnover of over 15.1 billion euro.

In order to obtain an ESG certification, a company must have specific skills, making 'Green Skills' increasingly relevant. Firstly, it is crucial to have a sound knowledge of ESG principles and standards, which can be acquired through training courses or relevant work experience. This is the context for 3Bee, the nature tech company that develops technologies to monitor, protect and restore biodiversity. 3Bee works with municipalities and companies in various sectors, including agribusiness, highways and energy, to help them define a tailored climate and biodiversity strategy. 3Bee also provides training in sustainability: it has developed a network of sustainability professionals, the Oasis of CSR, which it accompanies on a path of constant updating on the main issues, including European regulations.