Title: Rising from the pandemic: do ESG factors matter for resiliency in the Italian Stock Market?

Authors: Pasquale Marcello Falcone; Antonio Lopolito; Edgardo Sica

Addresses: Department of Business and Economics, University of Naples Parthenope, Via Generale Parisi, 13, Napoli 80132, Italy; Sustainability Competence Centre, Széchenyi István University, Egyetem Square 1, 9026 Győr, Hungary ' Department of Social Sciences, University of Foggia, Via Alberto da Zara, 11, Foggia 71121, Italy ' Department of Social Sciences, University of Foggia, Via Alberto da Zara, 11, Foggia 71121, Italy

Abstract: This study examines the resilience of ESG investments across different phases of the COVID-19 pandemic, focusing on the Italian Stock Exchange. We compare the performance of firms included in the MIB ESG index with a carefully stratified control group of non-ESG companies. Using a network analysis approach, the results show a higher degree of resilience among ESG assets, particularly in the post-lockdown phase, when they exhibited a faster and stronger recovery than traditional investments. The findings suggest that firm-level commitments to environmental responsibility, social engagement, and sound governance can enhance market robustness during periods of uncertainty and stress. By providing empirical evidence on the stabilising role of ESG practices, the study contributes to the sustainable finance literature and improves understanding of the relationship between ESG investing and market dynamics. The analysis identifies consumer discretionary, healthcare, and technology as the sectors that benefited most from ESG adoption during the recovery phase.

Keywords: resilience; Italian Stock Exchange; COVID-19; environmental, social, and governance; ESG; asset correlation networks.

DOI: 10.1504/IJGE.2026.151901

International Journal of Green Economics, 2026 Vol.20 No.1, pp.14 - 26

Received: 22 Dec 2023
Accepted: 07 Mar 2025
Published online: 25 Feb 2026 *

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