Abstract
The study investigates FTSE 100 companies, focusing on how pillars of environmental performance—emission control, environmental innovation, and resource efficiency—affect the cost of debt. Findings indicate a significant negative correlation between environmental performance and borrowing costs, emphasizing the financial benefits of sustainability. Although environmental innovation's impact on debt cost shows a negative trend, it's not statistically significant, suggesting complex financial implications. The research highlights the importance of sustainable practices in reducing borrowing costs, underscoring the critical role of environmental stewardship in financial decision-making.