Among the five largest nations in Europe, the UK has the highest percentage of sustainable farms (78%), but Italy is second with 70% of sustainable farms, ahead of Germany (67%), France (66%) and Spain (52%). So says Standard Ethics, the independent rating agency based in London and focused on sustainability, which reflects on 2024 with the publication of its Annual Report according to which in Europe the vast majority of companies rated (constituent of Standard Ethics indices) is between an EE, EE- and E+ rating.

According to Standard Ethics, the Italian stock market is characterized by the presence of numerous financial and banking institutions compared to other countries: competition in the banking sector is very strong and there are also medium-sized and small banks. This, combined with a strong sensitivity to international best practices and the measures taken by regulators after the 2008 crisis, led the banking system to align rapidly with the sustainability principles outlined in the international guidelines.

The Italian food and beverage industry appears to be the sector with the greatest scope for improvement, according to the Standard Ethics report: companies in this sector, the analysis They are often not listed on regulated markets and therefore do not have to provide sustainability information. Best practices in this area are sometimes lacking in ESG reporting, transparency and disclosure standards.

In 2024, analysts at Standard Ethics observed the continued positive trend of companies and industrial sectors globally to increase their investment in medium-to-long termlong-term, with just over 60% of the global companies analysed currently have a Sustainable Grade rating. 

Overall, the report stresses, "sustainability has become an important reality for many companies and the way they run their businesses. All companies in Europe will face the challenges of ESG rating legislation and with these clearer standards it will be imperative that both companies and ESG rating providers work closely together, Guided by the new and updated sustainability guidelines provided by the EU and its international counterparts".

The 2024 annual report: 

• reviews the Corporate Standard Ethics Ratings (SER) of a sample of over 500 globally listed companies; 
• reviews and comments on the Country Standard Ethics Ratings assigned to more than 45 countries, with new actions taken in relation to South Korea (downgrade) and Poland (upgrade); 
• provides an overview of the Security Standard Ethics Rating (SER) service and its methodology; 
• compares sustainable developments in over 30 of the most important industrial sectors; 
• examines all key ESG (environmental, social and governance) aspects and performance in areas such as sustainability governance and corporate governance.

The Agency’s annual activities also covered a number of launches, including a study on unlisted Italian banks on alignment with international sustainability guidelines, including the quality of their public disclosure and whether they have independent ratings that adopt the principles of the recent EU regulation on ESG rating providers.