ESG impact on borrowing costs

 

Build ESG performance today. Secure better financing tomorrow.

 

Capra empowers companies to transform sustainability ambition into financial advantage. By aligning ESG targets, data, and bank expectations, we help unlock lower borrowing costs through sustainability-linked financing – turning progress on ESG into measurable economic value.

Why this matters for your business

ESG becomes a key factor in financing decisions and companies that act early can reduce borrowing costs and strengthen their access to capital. Capra helps translate sustainability ambition into measurable financial value.

How we can help
Key concerns our customers are facing:

“Why are banks increasingly linking ESG performance to lending conditions?”

“Can ESG really reduce our interest rate?”

“What ESG targets do banks actually care about?”

ESG factors influence long-term credit risk and are increasingly required to be assessed under sustainable finance regulations.

Yes. Interest margins are contractually adjusted based on the achievement of predefined ESG targets. Meeting agreed KPIs can lead to margin reductions, while underperformance may remove or reverse these benefits.

Banks prioritise quantifiable ESG targets – such as emissions reductions, energy efficiency improvements, or recognised ESG ratings – that can be monitored and linked to financing terms.

 
 
The opportunity: How ESG affects borrowing costs

Banks subject to SFDR and sustainable finance frameworks increasingly offer sustainability-linked financing.


How interest reductions are achieved (practical examples)

Use cases
Examples of how our solutions can help your business

How do you select the right ESG reporting/managing software?

Not every company needs CSRD today. Learn how VSME fits into the broader sustainability landscape and when to scale up.

Why choose Capra for your Partner?

 

Independent advisor

Capra acts independently from lenders, ensuring advice is objective and aligned with your business interests.

 

Deep understanding
of both ESG frameworks and financial products

Capra combines technical knowledge of ESG frameworks with practical insight into how banks structure and price sustainability-linked financing.

 

Connecting
ambition, data, and financing

Capra translates sustainability ambitions into measurable KPIs, making them suitable for inclusion in financing agreements.

 

Focus on cost-effective sustainability

Capra helps prioritize ESG actions that deliver financial value, are proportionate, targeted, and economically sound.

Get in Touch
with one of our Experts

Ralph Bender

Founder

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