This study examines the impact of Environmental, Social, and Governance (ESG) scores on the financial performance and cost of capital of publicly traded Brazilian companies. Using a sample of 99 companies from 2018 to 2022, the research tests two hypotheses: (1) ESG scores are negatively associated with the cost of capital, and (2) ESG scores are positively associated with return on assets (ROA). The study employs panel regression analysis and quantile regression with fixed effects to analyze the data. The findings indicate that higher ESG scores are significantly associated with lower costs of capital and better operating performance. Specifically, environmental performance was found to be the only dimension that significantly affects the cost of capital, while environmental, social, and governance scores positively impact operational performance. The results support the hypothesis that ESG practices can lead to financial benefits, such as reduced capital costs and improved operational efficiency. The study contributes to the literature by providing empirical evidence that higher ESG scores are linked to better financial and operational outcomes in Brazilian companies. This information is valuable for investors, shareholders, and regulators interested in sustainable practices and their impact on corporate performance. However, the study's limitations include its focus on Brazilian companies and the need for further research to explore the effects of ESG practices in different contexts and over longer periods.This study examines the impact of Environmental, Social, and Governance (ESG) scores on the financial performance and cost of capital of publicly traded Brazilian companies. Using a sample of 99 companies from 2018 to 2022, the research tests two hypotheses: (1) ESG scores are negatively associated with the cost of capital, and (2) ESG scores are positively associated with return on assets (ROA). The study employs panel regression analysis and quantile regression with fixed effects to analyze the data. The findings indicate that higher ESG scores are significantly associated with lower costs of capital and better operating performance. Specifically, environmental performance was found to be the only dimension that significantly affects the cost of capital, while environmental, social, and governance scores positively impact operational performance. The results support the hypothesis that ESG practices can lead to financial benefits, such as reduced capital costs and improved operational efficiency. The study contributes to the literature by providing empirical evidence that higher ESG scores are linked to better financial and operational outcomes in Brazilian companies. This information is valuable for investors, shareholders, and regulators interested in sustainable practices and their impact on corporate performance. However, the study's limitations include its focus on Brazilian companies and the need for further research to explore the effects of ESG practices in different contexts and over longer periods.