Abstract
This study examines the evolving integration of Environmental, Social, and Governance (ESG) practices among firms in Central Italy, with a focus on the Marche, Abruzzo, and Molise regions. Building on a 2023 survey and incorporating data from a 2024 follow-up, the analysis offers longitudinal insights into ESG adoption across firm size, sector, and geography. Results indicate modest but uneven progress. Environmental practices remain underdeveloped, particularly among smaller firms, despite growing awareness. Social dimensions show slow improvement, with limited formalization and persistent gender imbalances. Governance emerges as the most dynamic pillar, with notable advances in board diversity and ESG-linked executive incentives. Regional disparities are evident, with Abruzzo leading in overall progress, while sectoral trends highlight improvements in extractive and utility industries. Larger and older firms maintain an ESG advantage, though smaller enterprises exhibit increasing responsiveness. While perceived financial returns remain limited, especially for SMEs, firms with stronger ESG performance report higher revenue growth. Motivations for ESG adoption are shifting from regulatory compliance to strategic positioning, suggesting a cultural transition toward sustainability as a source of competitive advantage.