Abstract
This study systematically examines the relationship between Environmental, Social, and Governance (ESG) integration, corporate financial performance, and capital allocation efficiency across modern business enterprises. Utilizing panel data from multi-sector corporations, the research investigates how sustainable operational frameworks influence Cost of Capital (CoC), Return on Invested Capital (ROIC), and downside tail-risk resilience. Grounded in Stakeholder Theory and the Resource-Based View (RBV), our empirical results indicate a statistically significant inverse correlation between robust ESG disclosure frameworks and corporate cost of debt, mediated by reduced information asymmetry and enhanced investor trust. Furthermore, firms that proactively incorporate sustainability into core capital budgeting processes exhibit superior long-term risk-adjusted returns. Strategic guidelines are formulated for corporate executives, risk managers, and financial analysts.