This paper aims to investigate the effect of Environmental, Social, and Governance (ESG) variables on business financial performance and their influence on operational and investment decisions. The financial performance of Latin American corporations from 2019 to 2022 was quantitatively analyzed using secondary data from Refinitiv. The analysis conducted through Partial Least Squares Structural Equation Modeling (PLS-SEM) revealed a positive effect of environmental factors on profitability, while social factors notably have a negative effect on asset utilization. However, there was no observable impact of governance characteristics on financial performance. These findings suggest that while social issues may hinder operational efficiency, proactive and sustainable corporate practices aimed at addressing environmental challenges can enhance company profitability. Suggestions include adopting comprehensive ESG governance, implementing successful CSR initiatives, and making sustainable investments in environmental policies. A comprehensive understanding of the relationship between ESG factors and financial performance, which seeks to promote both financial success and positive societal and environmental outcomes, necessitates further in-depth contextual study.