Estimate the impact of ESG rating changes on cost of equity and debt: academic evidence suggests 1-notch ESG upgrade reduces cost of equity by ~10–30 bps and investment-grade bond spread by ~5–15 bps.
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Enter the values for the scenario you are assessing. Estimate the impact of ESG rating changes on cost of equity and debt: academic evidence suggests 1-notch ESG upgrade reduces cost of equity by ~10–30 bps and investment-grade bond spread by ~5–15 bps. Use the esg cost of capital result to inform your calculation.