Sustainability now decides the cost of corporate debt

The environmental discourse stopped being decorative and became a financial variable. Sustainability now influences financing decisions, the cost of debt and the risk assessment of companies, according to analyses presented in the Dominican financial sector.

The paradigm shift

Banks and investors increasingly incorporate environmental, social and governance (ESG) criteria when lending money or buying debt. A company with good sustainable performance can access better rates, while one with unmanaged environmental or social risks faces higher costs or, directly, runs out of financing.

What it implies for local companies

For Dominican SMEs and large companies, the signal is clear: measuring impact, reporting and managing ESG risks stopped being optional. Those that do it first have a concrete competitive advantage over their rivals.

The key figure

The cost of debt. The new frontier where it is decided who gets credit and at what price.