The study examines whether Environmental Social Governance (ESG) practices affect financial performance of Asian companies while analysing the moderating effect of Shariah compliance. Using 7750 firm-year observations, the study found that ESG practices brought positive results to market capitalisation (Tobin’s Q) measurements. This signifies that market value increases in companies that focus on sustainability. Nevertheless, ESG practices do not significantly affect Return on Assets (ROA), which implies that ESG investment may produce financial gains over a longer period of time. The results also show that the financial performance of Shariah-compliant firms outperforms their non-Shariah compliant counterparts with significant positive findings on both ROA and Tobin’s Q. The significant result of the ESG and Shariah compliance interaction indicates that companies following Shariah principles gain higher financial benefits from their ESG initiatives than non-compliant firms. The research adds essential value to sustainable finance discussions with findings that serve regulators, financial professionals and corporate executives concerning profit-sustainability integration efforts.