Title: Measuring inequality in the adoption of ESG scores by small and medium enterprises Authors:  Alessandra Amendola - University of Salerno (Italy) [presenting]
Paolo Giudici - University of Pavia (Italy)
Adelaide Emma Bernardelli - University School for Advanced Studies Pavia (Italy)
Abstract: Inequality has been a central focus in discussions on sustainable development, and it is typically measured using metrics such as the Gini index and the Lorenz Curve. While these measures were initially applied to income inequality, they have progressively been used to assess disparities in access to essential resources, environmental impact, and infrastructure. However, little attention has been given to inequality in Environmental, Social, and Governance (ESG) performance, which is vital for both firm strategies and market dynamics. Existing ESG studies focus on its financial benefits and performance, but the uneven distribution of ESG adoption, particularly among small and medium-sized enterprises (SMEs), remains underexplored. This issue is particularly relevant following Italy's adoption of the Corporate Sustainability Reporting Directive (CSRD), which mandates ESG reporting for large enterprises and listed SMEs. The aim is to introduce a novel methodology to assess ESG adoption among Italian SMEs, measuring inequality in ESG scores as a proxy for diffusion. The dataset, which contains ESG scores and a set of financial variables, is analyzed using the Gini index to predict ESG disparities and assess model performance. Additionally, the study extends the analysis with multivariate approaches, incorporating linear regressions and neural networks to explore the determinants of ESG inequality.