This study investigates the impact of Environmental, Social, and Governance (ESG) scores and the Sustainable Development Goals (SDGs) on the performance of Brazilian companies from highly polluting sectors listed on the Corporate Sustainability Index (ISE) of B3 – Brasil, Bolsa, Balcão, between 2016 and 2020. The research employs a mixed-method, descriptive, and documentary approach. Results reveal that ESG factors, when considered jointly, do not significantly contribute to the advancement of SDGs. However, when disaggregated, environmental, social, and governance dimensions exhibit positive and significant effects on SDG alignment. In contrast, market performance—measured by Tobin’s Q and Market-to-Book ratios—was positively and significantly influenced only by the aggregated ESG scores. No significant relationship was found between SDGs as a whole and market performance, but disaggregated analysis revealed that SDG 3 (Good Health and Well-Being) positively influenced both Tobin’s Q and Market-to-Book, while SDG 9 (Industry, Innovation, and Infrastructure) had a positive effect only on Market-to-Book. These findings offer theoretical contributions by highlighting the differentiated effects of ESG and SDGs on corporate performance in an emerging economic context. From a practical standpoint, the results support the development of more robust corporate sustainability strategies, assist investors identify value-adding ESG practices, and inform policymakers in designing more effective regulations that foster both internal improvements and external commitments to sustainable development.
