One of the most confusing parts of ESG discussions is: The ratings themselves. A business may receive: A strong ESG score from one organization While receiving: A weak or average score from another. This leaves many business owners asking: “How can the same company be evaluated so differently?”

Most business owners focus on ESG discussions through the lens of: Sustainability Corporate responsibility Or public perception But ESG also affects something highly practical: The cost of capital. Cost of capital refers to: The price a business pays to access funding and investment Including: Loans Investor capital Credit facilities Equity financing And acquisition financing