This study explores the impact of Environmental, Social, and Governance (ESG) factors on corporate strategies and performance in North Macedonia. Using firm-level data from the BEEPS survey (2013–2019), it examines ESG elements such as CO2 emissions, energy use, gender equality, and transparency. Results show that while ESG is integrated into corporate strategies, its effect on performance is mixed. CO2 emissions and gender equality correlate positively with performance, while transparency has a negative effect. The study highlights the structural and regulatory challenges North Macedonian firms face compared to those in developed economies with mature ESG frameworks. These findings offer valuable insights for policymakers working to strengthen ESG-driven corporate sustainability in emerging markets.