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 phenomena and better transparency of information, by companies must integrate ESG factors between metrics and performance management systems. This work aims to identify the drivers 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.
Keywords: Performance Management Systems, Management Control, Sustainability management control, Sustainability, ESG performance
