The increasing relevance of ESG (Environmental, Social, and Governance) in financial research and practice is driven by materiality, investor demand, and regulation. Since ESG initiatives involve high costs for companies, the question arises whether investments are worthwhile in terms of achieving higher performance or lower risk. Previous research has primarily focused on the shareholder value perspective. More recent studies examine ESG from a risk perspective, mainly based on equity. Research on the relationship between ESG and credit risk is still sparse, particularly in the European context. From a principal-agent theoretical perspective, it can be assumed that creditors evaluate ESG investments differently than owners. For creditors, the fulfillment of their payment claims from cash flow is paramount, and they generally favor less risky investments. The aim of this study is to provide a comprehensive overview of the existing empirical literature and to expand it through our own empirical investigation.