This paper aims at analyzing the relationship between Environmental, Social, and Government (ESG) scores and the weighted average cost of capital (WACC) for firms with headquarters based in Latin American (LatAm), through a panel model, using a data set that includes a total of 606 observations corresponding to information from 202 LatAm between 2017 and 2019. The results show that the negative relationship between ESG and WACC scores is mainly explained by governance practices. Besides, executives of Latin American firms can direct part of their decisions towards the adoption of more efficient and sustainable ESG practices (particularly corporate governance). These study¿s findings provide a roadmap that researchers and practicing professionals can use to improve their understanding of the relationship between ESG and WACC. Finally, the study presents the potential for further research in the field.