We investigate the impact of mandatory environmental, social, and governance (ESG) disclosures on the cost of equity capital across the globe. Utilizing a dataset including firms from 62 countries and a difference-in-differences framework, we document a significant reduction of 50 basis points in the cost of equity capital for firms compelled to adopt ESG disclosure requirements. This reduction is particularly pronounced in jurisdictions with robust legal enforcement and well-defined social norms, as well as in countries where implementation mandates originate from government entities. Our analysis highlights two underlying mechanisms contributing to the decline in equity capital costs: (1) heightened disclosure and enhanced information quality, and (2) increased institutional ownership stemming from E&S-conscious investors. Furthermore, firm value rises through the change in the cost of equity capital, rather than the change in the cash flow channel, after the disclosure mandates. Collectively, our findings lend support to the notion that disclosing non-financial ESG information not only enhances information environments but also materially impacts the cost of equity capital.