Integrating ESG issue into performance management system. An analysis of Italian context

The attention of regulators and stakeholders toward environmental, social and governance (ESG) issues has consolidated in recent years. In this context, companies have to, on the one hand, manage ESG risks and on the other hand, face the greater information needs required by stakeholders and political policymakers. The management of ESG phenom-ena and better transparency of information, by companies must integrate ESG factors be-tween metrics and performance management systems. This work aims to identify the driv-ers that favour the integration of ESG indicators in performance management systems. A panel analysis was performed in the period 2018-2021 on a sample of 104 listed Italian companies. The results show that some factors such as environmental sensitivity and the presence of State-Owned Enterprises are factors that could incentivized the integration of ESG metrics.