8. Italian SMEs’ Sustainability Scores

The chapter focuses on estimating sustainability scores for Italian SMEs, utilizing a survey conducted by the University of Ferrara in 2019 and 2021. It employs advanced statistical techniques such as Correspondence Analysis (CA) and Principal Component Analysis (PCA) to evaluate qualitative and quantitative data. The analysis covers aspects of the Circular Economy, patent innovations, and labor force conditions. Notably, the study excludes governance from the sustainability scores, reflecting the unique characteristics of Italian SMEs. The chapter also integrates balance sheet data from AIDA Bureau Van Dijk, applying panel regression and quantile regression to understand the determinants of sustainability scores. The analysis reveals that higher liquidity ratios are negatively correlated with sustainability scores, suggesting a focus on short-term financial stability over long-term sustainability investments. The chapter concludes with a propensity score analysis to assess the impact of innovations on sustainability, providing valuable insights for policymakers, businesses, and academics.