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.

What new insight or understanding did you gain from this video?