Assessing the ESG Impacts of Italy’s Transition to Industry 4.0

This study investigates the Environmental, Social, and Governance (ESG) impacts of Italy's transition to Industry 4.0, focusing also on the European context. Italy's approach to Industry 4.0 is strongly related to COVID-19 crisis, characterized by substantial government initiatives, including the National Recovery and Resilience Plan, which dedicates significant resources to digital transformation, ecological transition, and societal inclusion. By comparing Italy's ESG outcomes with other European economies, specifically France, Germany, and Spain, the paper assesses the effectiveness of various policies and corporate practices across these pillars. Findings reveal that while Italy's digital transformation policies have facilitated advancements in environmental sustainability and social integration, challenges persist in addressing regional disparities and ensuring equitable access to digital and technical skills. This paper highlights the need for holistic governance and targeted investments to maximize Industry 4.0's potential, proposing recommendations for policymakers and industry leaders aimed at fostering sustainable growth and reducing inequalities.