ESG | Consob on the relationship between sustainability and profitability

In June 2024, Consob released a study (published in Quaderno di finanza sostenibile, June 2024) focusing on the use of artificial intelligence to identify the relationship between a company’s environmental, social and governance (ESG) score and EBIT (which is one of the indicators to gauge economic profitability). According to the research carried out by Consob on 850 European and American companies, also by means of machine learning models, the greater an enterprise’s performance in the 3 ESG pillars, the greater its profitability. Specifically, the environmental pillar “E” implies an even better effect on profitability in comparison to social and governance pillars “S” and “G”.

Newsletter n. 98 – July 2024