<p>The shareholders today demand more than just profits. They expect companies to weave Environmental, Social and Governance (ESG) principles into their investment choices to generate sustainable value. This systematic review helps us to understand how ESG performance affects corporate investment efficiency. For this, we formulated a research question: Does ESG performance help make efficient investments? To answer this question, we selected 39 studies for review published from 2010 to 2024. The results indicate that ESG performance enhances investment efficiency. For a detailed approach and individual analysis, we divided the articles into four components: (a) environmental, (b) social, (c) governance, and (d) ESG integrated component. Most of the studies found belonged to categories (b) and (c). This shows that, although ESG plays a critical role in managerial decision-making, few studies have been conducted on this topic, creating a research gap for future researchers. The geographical information shows China as the leading country in research in this domain, accounting for almost 36% of the studies, with very few studies in other developed and developing economies. This might be due to the non-mandate of ESG disclosure in several countries. The findings also reveal various moderating mechanisms that can optimise investment decisions. Additionally, the study highlights models used to measure corporate investment efficiency. This study helps managers to understand the importance of linking sustainability with investment decisions. Overall, our review shows that firms will need to improve the transparency and quality of their ESG disclosures to enable more efficient investment decisions.</p>