Scoring Environmental Social Governance Ability: A model of sustainability assessment in the blue economy

Frame of the research. ESG scores primarily evaluate sustainability performance but fail to incorporate firms’ strategic orientation toward sustainability. This limits the understanding of the key drivers behind successful ESG transitions within the blue economy. Purpose of the paper. The study aims to develop and test the ESG Ability Score, a novel measurement model that assesses both ESG performance and sustainability orientation, offering a holistic evaluation of firms’ sustainability responsiveness in the blue economy. Methodology. The ESG Ability Score is developed through content analysis of sustainability reports of 22 Italian shipyards and shippers. It is based on the ESG score, quantified using a machine-learning web application, and the Sustainability Orientation Index (SOI), determined by the inclusion of ESG content in the corporate identity and strategic direction. Results. Neither industry reaches low ESG ability, but a greater number of shipyards exhibit medium-high levels of ESG ability compared to shippers, with shipbuilders outperforming shippers in the SOI overall. Research limitations. The study is limited to Italian firms and relies on secondary data. ESG Ability Score should be validated across different geographical and industry settings. Managerial implications. The ESG Ability Score acts as a diagnostic and strategic tool to identify sustainability gaps, align strategies with ESG goals, and support informed decision-making. Originality of the paper. A robust methodological framework is proposed for developing an ESG Ability Score. It uniquely integrates sustainability orientation with ESG performance to comprehensively evaluate the sustainability approach of maritime firms.