The logistics sector in Malaysia has grown significantly, with a 14.5% increase anticipated for 2023 and a stock exchange turnover of RM14.70 billion, demonstrating its economic importance. However, the industry is responsible for around 21% of Malaysia’s total greenhouse gas emissions, prompting worries about its environmental, social, and governance (ESG) performance. Even though publicly traded companies have been required to report ESG data since 2016, the precise impact of ESG practices on financial outcomes in the logistics sector is still unknown. Therefore, the study’s objective is to analyse the impact of ESG on financial performance in the logistics sectors in Malaysia. Using data from 2018 to 2023, the study uses Panel-Corrected Standard Errors (PCSE) regression analysis to investigate the association between ESG rankings and financial measures. The findings show that environmental performance (ENSCORE) increases accounting profitability (ROA and ROE) while decreasing market valuation (TQ). Social performance (SOSCORE) lowers ROA and ROE while considerably increasing TQ, implying that social activities, while expensive in accounting terms, are highly valued by investors. Governance performance (CGSCORE) has a positive correlation with TQ, highlighting its significance for investor confidence. These findings help advance our theoretical knowledge of ESG-financial performance dynamics in emerging economies and provide practical insights for executives, investors, and regulators. The report emphasises the need to reconcile ESG measures with financial aims to create sustainable growth in Malaysia, particularly in the logistics sector.