ESG Outlook 2025, the latest report from the CRIF Sustainability Observatory, provides an updated analysis of how companies’ ESG profiles are evolving, particularly SMEs, and examines the role of the banking system in supporting the transition to a low-carbon economy in a rapidly evolving regulatory and market environment.
This in-depth analysis shows that the economic and financial system is increasingly strengthening its commitment to sustainability. In 2024, companies made significant progress in meeting ESG (Environmental, Social, and Governance) standards, while the banking system continued to support access to credit for the most responsible companies.
CSRD as a Lever for Sustainability
Non-financial reporting continues to be a key accelerator on the path to sustainability. The ESG Outlook shows that companies subject to the CSRD (Corporate Sustainability Reporting Directive) demonstrate significantly higher average ESG performance than those that do not publish a sustainability report.
The integration of ESG factors into credit processes is becoming a key element in assessing risk and creditworthiness. European supervisory authorities are increasingly pushing for the inclusion of these parameters in rating systems, recognizing that companies with a strong sustainability profile also tend to be more solid and resilient. The analysis conducted by CRIF clearly highlights this correlation. For the same credit score, corporate risk increases as the level of ESG performance decreases: among companies with low or medium-low credit scores, the default rate can be up to 70% higher for “Low” ESG performance compared to a “High” performance.
The Most Responsible Sectors
The analysis confirms that in 2024 most sectors saw an improvement in their ESG profiles compared to the previous year. This positive trend is widespread, but with significant differences between sectors, demonstrating that the transition is happening at different rates.
The sectors ranked best—based on the lowest average ESG scores—are ICT (Information & Communication Technology)-media-telecommunications, mechanical engineering, and textiles and apparel. Their performance has benefited from investments in efficient technologies, digitalization, and sustainable innovation. Companies in these sectors are increasingly integrating sustainability into production processes, resource management, and supply chains.
At the other end of the spectrum, the sectors experiencing difficulties include agriculture, food, beverages and tobacco, and mining, oil and gas, which have the highest average ESG scores and therefore the least adequate performance. Agriculture not only continues to be in a critical position, but also shows a deterioration compared to 2023, a sign of the difficulty in reducing emissions and adopting more sustainable practices.
Banks Reward the Most Responsible Companies
Today, many large companies and SMEs demonstrate strong ESG performance, and loans to these businesses have default rates over 25% lower than average—clear evidence that sustainability and financial strength go hand in hand.
Banks recognize the value of companies investing in responsible practices and are strategically directing financial resources toward those driving the future competitiveness of Italian business.
Conclusion
Data shows how sustainability has now become part of corporate and financial strategies globally, and CRIF’s commitment to these responsible values confirms this trend. Businesses are strengthening their ESG awareness, while the banking system is playing an increasingly active role in supporting and incentivizing this process, offering improved access to credit to companies that invest in sustainable practices and business models.
