Measuring inequality in sustainability

Alessandra Amendola, Adelaide Emma Bernardelli and Paolo Giudici

Chapter 19 in Handbook of ESG Investing, 2026, pp 460-489 from Edward Elgar Publishing

Abstract: This chapter proposes a novel methodology to assess the adoption of ESG criteria by small and medium enterprises, measuring the inequality in ESG scores as a proxy of their diffusion. To measure inequality, we propose to employ the Gini index, and to predict inequality, we compare alternative machine learning models, using different performance metrics, including the analysis of the Gini residuals. We exemplify our proposal on a sample of over 1,000 small and medium-sized enterprises across various sectors. The findings reveal significant disparities in ESG practices, with notable sectoral differences. The approach suggests where policies should be targeted to achieve more uniform sustainable development goals.

Keywords: ESG; SME; Machine learning; Inequality (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035322770
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