The Italian Manufacturing Sector: Sustainability, ESG Reporting, and Operational Efficiency

The manufacturing sector is a fundamental pillar of the Italian and global economy, but it is also one of the main contributors to greenhouse gas emissions worldwide. According to an ISTAT analysis, several sectors within the Italian manufacturing ecosystem have shown a strong propensity to adopt actions to improve environmental impact, with 59% of companies engaged in initiatives aimed at improving the environmental sustainability of their activities. ¹ 

This commitment will certainly be rewarded: the industrial sector analysis by Intesa Sanpaolo provides a detailed snapshot, stating that “the Italian manufacturing industry will stabilize at 2024 revenue levels at constant prices, with stronger performances for Pharmaceuticals (+2.4% year-on-year), Mechanics (+1.7%), and Fast-Moving Consumer Goods (+1.2%), and will record modest revenue growth at current prices (+1.8%), reaching 1,143 billion euros (+229 billion compared to 2019).” 

As highlighted by these analyses, the competitiveness of manufacturing companies will continue to depend on their ability to invest in digitalization, energy efficiency, and sustainability—key elements to face the dual digital and environmental transition.

The reduction of carbon emissions is no longer a mere bureaucratic requirement, but a strategic imperative that affects costs, risks, reputation, and regulatory compliance. ² 

ESG Reporting: The Complexity of Data Collection 

ESG (Environmental, Social, Governance) reporting has become an essential element for manufacturing companies that want to maintain their competitiveness and meet the expectations of investors, customers, and regulators. However, the collection and management of ESG data represents a complex challenge, especially in terms of integration among different company departments and accuracy of information.

According to an ESG360 analysis, many companies already use monitoring technologies and data collection systems, but often lack effective tools for cost control, financial reporting, and especially integrated analysis. Organizing data coherently, involving all departments, and integrating platforms with clients’ management systems are priorities to turn data into concrete value. ³ 

Supply Chain and Scope 3 Emissions: An Essential Focus 

For many companies in this sector, most greenhouse gas emissions are concentrated in Scope 3, which covers all indirect greenhouse gas (GHG) emissions generated by a company’s activities but coming from sources not owned or directly controlled by the organization itself. This includes, for example, emissions from the supply chain, transport, use, and disposal of sold products. 

This scope is the largest and often the most significant category of a company’s carbon footprint, accounting for up to 90% of total emissions in some sectors. However, it is also the most difficult to measure and manage, as it involves multiple external actors and processes throughout the value chain.⁴

This makes it essential to involve suppliers and logistics partners in credible and measurable sustainability strategies.  

Decarbonizing the Supply Chain: Challenges and Solutions 

Leaders in the manufacturing sector are under pressure to decarbonize quickly and credibly, but they also have the opportunity to lead the industrial transition towards sustainability. 

It is possible to achieve results by focusing resources on adopting circular production models and involving the supply chain. The latter can only be implemented efficiently with a digital foundation for monitoring, reporting, and decision-making. 

To effectively decarbonize the supply chain, manufacturing companies must address three fundamental challenges.  

For each of these, Convene ESG provides the necessary digital foundation to efficiently implement decarbonization actions, turning complex data into concrete decisions: 

Check for more insights on the ESG Convene Website .  

Sources: 

1. ISTAT, “Sostenibilità ambientale e performance economica delle imprese manifatturiere” https://www.istat.it/it/files//2025/05/Statistica-focus-sostenibilita-ambientale-manifattura_Anno-2022.pdf
2. Intesa Sanpaolo, “107° Rapporto Analisi dei Settori Industriali” https://group.intesasanpaolo.com/it/research/research-in-primo-piano/industria/2025/107-rapporto-analisi-dei-settori-industriali1
3. ESG360, “Manifatturiero sostenibile: guida pratica per sfruttare le potenzialità” https://www.esg360.it/report-analisi-e-ricerche/manifatturiero-sostenibile-guida-pratica-per-sfruttare-le-potenzialita-dellas-a-service/
4. Intesa Sanpaolo Innovation Center, “LE EMISSIONI INDIRETTE SCOPE 3 Misurazione, target setting e rendicontazione” https://www.intesasanpaoloinnovationcenter.com/content/dam/digitalhub/documenti/Report_2_scope_3_Unibo_ISPIC_def.pdf