Business outcome

Cost of capital

Cost of capital is the rate of return required to attract investment to a company, reflecting the risks associated with its operations and strategies.

Emergingnot covered

What it is

Cost of capital is the rate of return required to attract investment to a company, reflecting the risks associated with its operations and strategies. Sustainability performance can influence a company's cost of capital, as investors increasingly consider environmental, social, and governance (ESG) risks and opportunities.

Why it matters

Sustainability performance can influence a company's cost of capital, as investors increasingly consider environmental, social, and governance (ESG) risks and opportunities.

How it connects

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