Sustainable or Not Sustainable Pension Fund: This is the Question. The Case of Environmental Social Governance Policies in the Italian Pension System

The Environmental Social Governance (ESG) framework is a fundamental issue in every field of economics. Integrating ESG factors into business models, strategies, and policies is the new frontier for financial intermediaries as European policymakers, regulators, and investors increasingly require this. Also, Pension Funds face the daunting task of generating sufficient returns to provide adequate and sustainable retirement incomes for their members in the context of an aging population. This current study aims to determine the relationship between Pension Funds' performance and ESG attention in asset allocation strategies and how relevant the presence of gender diversity is in the board to promote this attention. The obtained results can contribute to formulating a deeper view of ESG practices, revealing significant aspects that influence sustainability action in the Pension Funds Italian market and providing recommendations for European policymakers and practitioners for the future.