Sustainability and the Cost of Capital

The video discusses the impact of sustainability practices on the cost of capital for companies. It highlights that companies excelling in ESG disclosures tend to have a lower cost of capital and better returns on invested capital. The Dow Jones sustainability scores are used to compare top and bottom companies, revealing significant differences in cost of debt and equity. European companies lead in sustainability, benefiting from stricter regulations. The conclusion emphasizes the financial benefits of detailed ESG disclosures, suggesting that they reduce perceived risk. A Q&A session addresses industry-specific data and regulatory impacts.

How does the cost of debt compare between top-performing and bottom-performing companies?

What conclusions can be drawn about the relationship between sustainability disclosure and company performance?

What impact does a lack of clear global regulation have on companies' sustainability investments?

In what ways do European companies differ from companies in other regions regarding sustainability and cost of capital?