ESG assessment of Italian companies: banks' questionnaires measuring firms' ESG propensity and their role in fostering sustainable finance development initiatives

Purpose This study aims to investigates how Italian banks assess the environmental, social and governance (ESG) compliance of corporate clients through structured questionnaires, identifying the most relevant metrics and operational strategies to enhance sustainability performance. It examines the extent to which these metrics align with the SDGs and explores their potential influence on banks' risk perception, credit access conditions and sustainable business performance. Design/methodology/approach The research adopts a mixed-method approach, combining qualitative thematic coding of nine ESG questionnaires from large and small Italian banks with quantitative statistical tests (chi-square and Fisher). The analysis evaluates the frequency and convergence of ESG indicators, compares practices across banks and maps the alignment of indicators with specific SDGs. Findings The results reveal strong methodological convergence among Italian banks' ESG questionnaires, with recurring indicators such as greenhouse gas emissions, renewable energy, governance practices and gender equality. While international ESG ratings show high divergence, the Italian banking questionnaires display homogeneity, suggesting potential for standardization. The study proposes an integrated conceptual model linking ESG metrics to perceived bank risk, credit access and sustainable performance. Research limitations/implications The integrated model is conceptual and not empirically tested in this study. We also lack access to banks' internal weighting schemes for ESG dimensions, limiting inference on how questionnaire outcomes translate into credit decisions. The small sample (nine questionnaires) constrains statistical power; we therefore emphasize effect sizes and confidence intervals. Practical implications Findings can guide companies in improving ESG performance to enhance credit conditions and inform policymakers seeking to harmonize ESG assessment standards within the financial sector. Originality/value This study provides a systematic analysis of ESG questionnaires used by Italian banks, highlighting convergence in practices and offering a conceptual framework that bridges ESG assessment with financial and operational outcomes.