This study examines the impact of Environmental, Social, and Governance (ESG) factors on the financial performance of the oil and gas industry, with a comparative analysis of Indian companies—ONGC, IOCL, and BPCL—and global leaders—Shell, ExxonMobil, and Chevron. The research evaluates both financial metrics (e.g., profitability, return on equity, and market value) and non-financial metrics (e.g., carbon emissions reduction, energy efficiency, workforce diversity, and ESG policy transparency) to understand the interplay between ESG initiatives and financial outcomes. Utilizing statistical tools such as Multiple Regression Analysis, the study investigates the strength and direction of relationships between key ESG indicators and financial performance.The findings indicate that while Indian oil and gas companies have shown commendable progress in carbon emissions reduction and energy efficiency, they lag behind global counterparts in areas such as renewable energy adoption, ESG policy transparency, and workforce diversity. However, Indian firms demonstrate strong potential in community investment and improving governance practices. The study highlights the strategic importance of ESG integration for enhancing both financial performance and long-term sustainability. This research offers valuable insights for policymakers, investors, and industry leaders, emphasizing the need for continued investment in ESG frameworks to drive global competitiveness and sustainable growth within the oil and gas sector.