This chapter investigates the extent to which environmental, social, and governance (ESG) factors, at a country aggregated level, affect foreign investors’ portfolio decisions. We observe, within a fixed-effect regression framework, that a stronger aggregate ESG performance is associated with larger inward foreign portfolio equity investment. We observe that foreign investors are less sensitive to ESG issues during periods of economic downturn, such as the global financial crisis, when financial factors gain relative importance, and that the ESG factors, in particular the S and G pillars, play a more relevant role in attracting foreign investment in developed rather than in emerging economies.