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This work tackles from an empirical perspective the widely debated relationship between sustainability in business practices and profitability, focusing on a sample of listed European firms. To measure the extent of sustainable practices at the firm level, the Comprehensive Environmental, Social, and Governance (ESG) score is proposed. The indicator, computed using the Mazziotta‐Pareto method, combines qualitative ratings on adherence to ESG standards with quantitative observations on the extent of data disclosure. Firms failing to pursue full disclosure are penalized. Focusing on the constituents of the Euro Stoxx 300 index, a dynamic panel model is implemented, where profitability is explained by the indicator. The results show that sustainability in business practices reduces profitability. These findings are in line with a strand of literature that highlights the role of strategic disclosure of ESG information on part of firms. Strategic disclosure occurs as a combination of greenwashing and social washing, with firms overstating the extent of their positive behaviors. The integration of sustainable practices within successful business models thus remains a relevant societal problem. The current EU policy framework is discussed in line with our findings. [ABSTRACT FROM AUTHOR]

The recent economic literature has largely investigated sustainability in the provision of public utilities, highlighting the role of governance models in the determination of economic results. Little attention however has been devoted to the social and environmental dimensions of sustainability. In Italy, a long‐lasting debate on governance structures in the water sector has been fuelled by scholars and policymakers for more than 30 years, whereas the first (and unique) experiment involving the return of full public management in water provision is taking place in the city of Naples. The present work analyses this peculiar case study, aiming to assess the effects of a major governance shift that occurred in the early 2010s—that is, decorporatisation—in terms of economic, social and environmental sustainability. We resort to a bundle of qualitative and quantitative techniques to address the research question and our exploratory results suggest that decorporatisation was overall beneficial: Although little changed in terms of economic sustainability, the social and environmental dimensions benefitted from the shift in governance. [ABSTRACT FROM AUTHOR]

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