This study examines the integration of Environmental, Social, and Governance (ESG) practices and their impact on organizational performance within Saudi Arabia’s oil and gas sector. The main objective was to determine how environmental initiatives, social responsibility programs, and governance mechanisms influence financial performance, shareholder value, and competitiveness amid the country’s sustainability transformation. ESG dimensions were treated as independent variables, while organizational performance was identified as the dependent variable. A quantitative research design was used, employing a structured survey distributed to professionals across various segments of the oil and gas value chain. The instrument was validated through expert review and pilot testing to ensure reliability. Descriptive statistics (frequency, mean, and standard deviation) were used to summarize adoption levels, while Spearman correlation tested the relationships among ESG dimensions and profitability. Results revealed that environmental practices were partially adopted, emphasizing energy efficiency over carbon capture and renewable integration, yet showed a moderate positive correlation with profitability (r = 0.437, p = 0.001). Social practices achieved the highest adoption and demonstrated the strongest relationship with profitability (r = 0.614, p = 0.001), particularly through health, safety, and inclusion initiatives. Governance practices were moderately implemented but significantly associated with profitability (r = 0.558, p = 0.001). Respondents identified high operational costs and regulatory ambiguity as main barriers, while opportunities emerged in innovation and investor confidence. In conclusion, ESG adoption positively contributes to financial and organizational performance. While environmental initiatives remain underdeveloped, social and governance dimensions drive measurable business value. ESG integration thus represents a strategic approach for achieving both profitability and sustainability in the evolving global energy landscape, supported by national policy frameworks such as Saudi Vision 2030 and the Saudi Green Initiative.

Keywords: ESG integration, sustainability, profitability, organizational performance, governance, social responsibility, environmental practices, oil and gas sector