This paper examined the impact ESG has on financial performance and market value of businesses. Saudi Arabia is embracing ESG in alignment with its vision 2030. Additionally, ESG is beneficial in strengthening relationships with investors, prioritizing long-tern gains and encouraging transparency and accountability. These benefits increase sales and returns for the organization, resulting in economic growth and development. However, challenges such as corporate resistance, varying regulations, lack of standardized metrics and data reliability issues persist. These are found to be addressed through education, standardization, mandatory ESG practices and modern technologies.