Transition towards a Low-Carbon Economy: The Contribution of the Italian Listed Utilities

Climate change is the most urgent environmental crisis we are facing today. As it menaces the survival of communities impacted by natural disasters and the prosperity of their businesses, it also raises social and economic concerns. Several international agreements and programmes, such as the 2030 Agenda, the 2015 Paris Agreement and the European Green Deal, stress that the transition towards a low-carbon economy is a necessary step to combat climate change. Undoubtedly, the utilities sector should assume great responsibility in this process. This paper aims at identifying how Italian utilities are contributing to the transformation of economy into carbon-free. Specifically, the study intends to understand how strategic they deem the fight against climate change for their long-term growth and ability to satisfy stakeholders’ expectations. This research focuses on Italian listed utilities. The choice of such companies is supported by the following motivations: •increasing interest of Italian institutions and markets in climate change and subsequent need for companies to implement low-carbon processes; •the utilities’ critical role in fighting climate change, as primary actors of a decarburization path founded on the transition from traditional energy sources to renewable ones; •dissemination of climate-related information by the selected companies, according to the current EU framework on non-financial reporting. The study is qualitative and adopts the content analysis method. Data are collected from non-financial statements, other corporate documents and websites. Empirical evidence will answer the following research questions: •Do Italian listed utilities adhere to any initiative promoting commitment to climate action or transparency on climate change impacts (e.g. SDG 13, CDP, TCFD)? •To what extent are their boards of directors involved in decision-making that can have an impact in terms of climate change? •Is the fight against climate change considered a strategic goal? •Have the companies established measurable targets concerning the fight against climate change? If so, have they provided information about the degree of achievement? •Are the companies managing climate-related opportunities as well as threats? •What measures have the companies actually implemented to reduce their impact on climate and to take the opportunities generated by climate change? The transformation of our economy into a climate-resilient one cannot take place without the committed effort of the utilities sector. Despite the limited number of companies analyzed in this study, the paper provides insights into the current situation of the Italian context and its middle-term possible evolution.