Resumen de Embedding ESG into core strategy: lessons from top-performing multinationals in Spain and Italy
María del Mar Perona Alfageme, Ignacio Urrutia de Hoyos, Daniele Gasbarro
In the evolving global economy, Environmental, Social, and Governance (ESG) practices have become fundamental for companies aiming to secure sustainable, long-term growth. ESG is no longer a peripheral concern but a strategic imperative that shapes economic performance, corporate reputation, and talent management. This chapter explores how leading Spanish and Italian multinationals leverage ESG principles – integrating sustainability, ethical governance, and innovation – to strengthen their competitive positioning in international markets. Drawing on case studies of six high-performing Italian and Spanish multinationals, recognized in 2023 by the LSEG ESG scores database, this chapter illustrates how ESG strategies drive financial resilience, regulatory compliance, and international market expansion (LSEG – ESG Scores). Companies that invest in renewable energy, decarbonization, circular economy initiatives, and responsible finance consistently achieve superior financial outcomes while effectively mitigating environmental and social risks. Furthermore, a robust commitment to ESG strengthens brand trust and corporate credibility, fostering enduring relationships with investors, customers, and local communities. Beyond financial and reputational benefits, ESG serves as a pivotal instrument for talent management, significantly influencing employee attraction, retention, and engagement. Organizations that prioritize workplace diversity, continuous professional development, and ethical governance foster inclusive and empowering environments. These practices not only enhance employee satisfaction but also drive innovation, creativity, and long-term organizational performance. Empirical evidence demonstrates a positive correlation between ESG adoption and firm performance, reinforcing the perspective that sustainability is not a limitation but a catalyst for long-term business success. This chapter contends that ESG practices transcend mere regulatory compliance, positioning themselves as strategic differentiators for firms seeking to achieve sustainable growth and resilience in an increasingly competitive and ethically conscious global economy.
