Köberle, AlexandreGundlach, Max2025-04-022025-04-022025-01-172025-01-17http://hdl.handle.net/10362/181829Adopting sustainable practices and responsible resource use is a pressing challenge involving the global economy, companies, and the financial sector. This study examines whether sustainability affects corporate borrowing costs and the rationale for banks to apply stricter sustainability criteria. Using multiple regressions, it analyzes ESG scores’ influence on borrowing costs in European markets, compares them with the US market, and considers industry-specific and sectoral differ ences. Results show ESG scores generally reduce the cost of debt, though this effect strongly de pends on sector and region. Future research here could focus on regulatory influences and provide deeper, sector-level insights into ESG-cost relationships.engCost of debtESG-ratingsESG-pillarsIndustry & Sector DifferencesCross country differencesmaster thesis203926617