Unlocking finance through sustainability: Evidence from Italian-listed companies

The aim of the paper is to analyze the impact of sustainable practices on the accessibility to bank debt. Many studies have shown that companies prioritizing sustainability can benefit from more favorable financing conditions; therefore, being sustainable, publicly traded companies can help reduce risks related to sustainability and encourage long-term sustainable development. To test this hypothesis, this study answers the research question through a quantitative method. The research is structured into two main steps. First, it identifies an environmental index and measures of banking debt. Second, a regression analysis is carried out on these two metrics to evaluate their relationship. The sample is selected from the Orbis database and is composed of 68 firms operating in industries more sensitive to environmental issues. Results show that there is no statistically significant relationship between the sustainability index and access to short-term bank debt. The evidence contributes to extending the existing literature by offering new insights into the effect of sustainability on credit access. Findings are a useful baseline for academics, practitioners, and decision-makers in understanding how these business models affect credit evaluation by the financial system—especially in light of the ESG guidelines issued by the EBA (2020). This study addresses a gap in the literature by exploring whether banks are already reacting to regulatory changes (CSRD, ESG Pillar III) in their credit rating practices, even during the transitional and pre-mandatory phase. It uniquely combines a sustainability index with firm-level debt measures for a highly representative sample of Italian listed firms.