The increasing threat of environmental degradation has driven global efforts to mitigate its adverse effects and support sustainable development. Among these efforts, Environmental, Social, and Governance (ESG) practices have gained significant traction, influencing corporate financial outcomes, strengthening investor confidence, and fostering sustainable business strategies. However, the impact of ESG adoption varies across countries, influenced by factors such as economic development, macroeconomic conditions, regulatory frameworks, and other moderating elements. This study explores the ESG-financial performance relationship by analyzing data from two distinct economies—India and the USA. Employing panel regression estimates for the period 2013–2022, it examines the extent to which ESG initiatives influence corporate financial performance, specifically Return on Assets (ROA), and how governance indicators moderate these effects. The research seeks to determine whether higher ESG scores translate into improved financial performance, revealing contrasting outcomes between a developed economy (USA) and an emerging market (India). The findings offer valuable insights for policymakers, investors, and business leaders, underscoring the importance of strong governance mechanisms in maximizing ESG effectiveness and ensuring financial stability.