The purpose of the present research is to evaluate the determinants of firms’ sustainability performance, focusing on the level of disclosure, management commitment, and compensation schemes. Regarding the first facet, the aim of the paper is to understand whether company reports are really informative and are a good predictor of real sustainability actions. The other main factors analyzed refer to the presence of specific ESG targets in the reports and to management compensation schemes, to assess if the presence of sustainability incentives genuinely affect sustainability policies. A time-series analysis is used for examining data gathered from among Italian listed firms for 3 years (2021–2023), which provides us with 194 valid firm year-observations. We performed robustness checks also to ensure the accuracy of the results and to control for potential multicollinearity problems. Sustainability performance has been measured by resorting to third-party ESG ratings. The outcomes confirm that the quality of disclosure is positively linked to sustainability performance, which is also affected by the presence of ESG targets in sustainability reports and by the existence of compensation schemes linked to the company’s sustainability performance. The last factor, however, exhibits a lower statistical significance in a dynamic perspective. The outcome will support managers and decision makers in improving company ESG disclosure to achieve better sustainability performance and higher ESG rating. To reach this target, it will be important also to assess the existence of well-defined ESG targets and adequate compensation schemes for the executive, to stimulate ESG compliance and encourage managers to engage in sustainability actions.