Barriers and Drivers for the Integration of ESG into Risk Management and Performance Measurement Systems: A Field Study in the Italian Context

This study examines the integration of environmental, social, and governance (ESG) factors into risk management (RM) and performance measurement systems (PMS) through the lens of management accounting change. By conducting a field study consisting of 12 interviews with 4 Italian companies that proactively disclose non-financial information before it becomes mandatory, the analysis highlights the factors that facilitate or hinder this process. The former include evolving stakeholder expectations and changes in the regulatory landscape, while the latter encompass a lack of ESG-related knowledge and inadequate information systems. The findings suggest that although companies are increasingly aware of the need to implement ESG into their management systems, the process is still in its early stages. This study contributes to the literature on ESG-oriented management control systems and offers insights for companies seeking to initiate the ESG integration process.