The problem of credit origination considering ESG indicators in banking system in 2025

The thesis investigates the challenges of credit origination within European banking institutions of 2025 whose primary focus centers on ESG indicator implementation. The EBA Guidelines on Loan Origination and EU Taxonomy have obtained full enforcement powers which indicates banks must conduct their lending activities toward sustainable objectives. Through a qualitative case study this research evaluates ESG integration methods across Intesa Sanpaolo, UniCredit and Banco BPM which represent the major banking sector of Italy. The research details the procedures which these financial institutions use to deploy ESG scoring mechanisms together with specific sectoral policies and green loan offerings. Research results demonstrate wide-ranging ESG integration practices between banking institutions which stem from their differing interpretations of regulations and strategic compulsions and institutional operational platforms. This work enhances knowledge about ESG framework implementation during credit origination and demonstrates field-level effects on banking regulation and sustainable finance.