ESG, purpose and education: sustainability as a cultural and strategic challenge for businesses

In recent years, the word "sustainability" has become central to public debate, consumer choices and, most importantly, business strategies. Today, talking about business means talking about its impact: on the environment, on people, and on society as a whole. In this scenario, ESG parameters – Environmental, Social, and Governance – represent the framework for assessing how sustainable and accountable a company is, beyond its economic and financial performance.

But where are we really in Italy? Are companies adopting concrete strategies to meet these criteria or are they merely making a cosmetic statement? On this journey, how important is it to have an authentic corporate purpose, capable of guiding action and not just storytelling? And above all, what role does education play in creating a new generation of informed leaders capable of reconciling economic objectives with social and environmental impact?

To answer these questions, we interviewed Giancarlo Giudici, Director of the Professional Certificate ESG Analysis & Investing and of the Executive Course in Corporate Finance: Capital Raising and Securities Market Operations (both courses in Italian) at POLIMI Graduate School of Management, and a leading expert in sustainability applied to business management. His answers provide a broad, concrete and well-documented picture of the deep meaning of ESG criteria and the path necessary for integrating them in a genuine way into the businesses of today and tomorrow.

Let's start with the basics: what exactly are the ESG parameters and what do they entail? What are their components and how are they measured today?

When we talk about ESG, we are referring to three classes of fundamental variables for assessing the overall sustainability of an organisation: the environmental, social and governance dimensions. Historically, companies have been evaluated almost exclusively on the basis of economic and financial parameters, such as the ability to generate profits, maintain good liquidity, or ensure a sound capital base. Today, this approach is clearly limited, as it neglects crucial factors that determine a company’s value and reputation over time.

The first area, that of the environment, is closely linked to the challenge of climate change. The international scientific community has unanimously highlighted how global warming is accelerating, with dire consequences: extreme weather events, reduced agricultural productivity, risks to human health, rising sea levels, and threats to the very existence of entire island nations. Underlying all this is the emission of greenhouse gases, such as carbon dioxide, which is mainly generated by industrial activities.

For this reason, the most relevant environmental metrics of ESG parameters include the amount of equivalent CO₂ emitted, water consumption, waste generation and resource efficiency. The most important international regulatory reference is the Paris Agreement of 2015, which imposes a shared commitment to reducing emissions and containing global temperature increases.

But it's not just about emissions. Environmental metrics also include air quality, water and soil protection, biodiversity protection and the development of the circular economy. These are all interlinked aspects, which define the overall environmental impact of a company’s activities.

The second area of the ESG parameters, that related to society, concerns both the internal and external spheres of the company. Internally, we are talking about the welfare of workers, safety at work, inclusion policies, the promotion of diversity and lifelong learning. A sustainable company is a place where people are respected, protected and empowered to grow. But there is also an external dimension: businesses operate within local communities and can generate positive externalities, such as sponsorships, scholarships, and social programmes. At the same time, however, they can also create negative impacts – such as traffic and pollution – which must be managed responsibly.

Finally, there is the “G” of Governance. This has always been the focus of the financial markets, but it is even more important today. Strong governance means transparency, integrity, codes of ethics, anti-corruption, and the presence of internal sustainability bodies such as CSR managers or sustainability officers. In this sense, we are also talking about an issue of internal company structuring: what incentives do managers receive? What are the criteria for an appointment to the Board of Directors? Governance is the dimension that ensures that commitments made on environmental and social issues are genuinely pursued and not merely declarations of principle.

There are established tools to measure all this. The main international standard is the Global Reporting Initiative (GRI), a modular standard that covers all areas of ESG, from climate change to waste management, from diversity to ethical conduct. In Europe, European Sustainability Reporting Standards (ESRS) have become mandatory for large, listed companies. Today, the publication of a sustainability report has become a common practice: companies report quantitative metrics, such as tons of CO₂ or cubic metres of water, and qualitative metrics, such as employee satisfaction or supplier integrity. This process serves a dual purpose: it promotes transparency towards the market and encourages the company to continuously improve itself.

How much attention do Italian companies pay to these criteria today? What strategies and actions are they adopting to truly be aligned with ESG and, in this process, how important is it to have a clear and authentic corporate purpose, free from the dynamics of greenwashing?

The attention of Italian companies to ESG criteria has increased significantly in recent years. An initial impetus certainly came from European legislation, which introduced clear obligations for large, listed companies, requiring them to report ESG data publicly. Although these companies represent a limited share of the Italian economy, their leading role in the production chain has had a cascading effect on suppliers, partners and SMEs. Companies that want to stay in the market today must provide information about their environmental footprint, employee treatment, and raw material traceability.

But it is not just a question of reporting. The legislation has also introduced more effective tools, such as mandatory due diligence on the sustainability of suppliers and customers, or the European taxonomy that precisely defines what qualifies as a “green” investment. These measures have made sustainability an operational criterion, not just a narrative one.

However, a deeper awareness is also emerging today. More and more Italian companies recognise that sustainability is not only an obligation, but a responsibility towards future generations. In this sense, it is not enough to ‘not pollute’, but it is essential to build a lasting development model that takes into account collective wellbeing. Pressure also comes from below: consumers, especially the younger generations, are very attentive to these issues and reward genuinely committed businesses.

In this scenario, companies are implementing numerous actions. On the environmental front, they are investing in decarbonisation: reducing energy consumption, transitioning to renewable sources, electric mobility, and production efficiency. Cutting-edge companies are choosing green suppliers, generating energy from photovoltaic systems, and focusing on circular economy models. On the social level, efforts are under way to close the gender gap and the gender pay gap and to promote gender equality, even in historically male-dominated sectors such as manufacturing, to activate corporate welfare and wellbeing programmes to balance work and private life. In terms of governance, however, transparency is the key word: codes of ethics, anti-corruption, independent evaluation systems, and accountability at all levels.

What makes the difference, however, is Purpose. Companies that adopt these strategies not out of obligation but out of conviction are those that will succeed in the long run. The risk of greenwashing is always present: declaring environmental commitments without operational consistency is a mistake that can seriously compromise a brand's reputation. An authentic Purpose guides choices, inspires behaviour, and creates internal cohesion. It is the real compass for a sustainable company.

How can we train managers and leaders to be capable of guiding companies towards a positive impact on society and the environment, in line with ESG criteria? What is POLIMI Graduate School of Management’s approach to this?

Developing a new, aware and sustainability-oriented leadership class is, perhaps, the most pressing challenge. The transition to a responsible economic model requires well-prepared leadership that is able to cope with growing complexity, convoluted regulations, and evolving social expectations.

At POLIMI Graduate School of Management, ESG training is a cornerstone. The approach is twofold: on the one hand, there are specific courses, both at the master’s and executive levels, dedicated to sustainable finance, ESG management, and impact strategy. On the other, sustainability is integrated across all training programmes: finance, logistics, supply chain, and procurement. Each subject area is reinterpreted in the light of ESG criteria because sustainability is not a corporate function, but an organisational culture.

This approach is also consistent with the structure and values of the School itself, which has chosen to become a B Corp, formalising its commitment to positive impact. Education is not seen as the simple transferring of skills, but as a transformation of the managerial mindset. It's about getting future leaders used to thinking long-term, assessing the social and environmental consequences of decisions, and engaging with different stakeholders.

In a world where a company’s success is increasingly measured by its contribution to the common good, educating leaders capable of combining performance with responsibility is key to building a better economy and a better future.