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The awareness of sustainability is increasing globally, and businesses are adjusting their practicesaccordingly to environmental, social, and governance (ESG) criteria. This study aims to fill the research gap of company ESG compliance and its relationship with foreign direct investments (FDI) at a country level and whether the association differs between developed and emerging countries. A dynamic system generalized method of moments (GMM) approach is employed on panel data of 23 developed and 19 emerging countries to capture the unobserved heterogeneityand endogeneity arising from FDI and the influence from its past values. The finding across different markets depicts diverse results. Overall ESG performance and social performance negatively influence FDI inflows in developed markets, while the governance score shows a positive relationship with FDI in emerging markets. Due to the limited company ESG datacoverage across countries, further research is needed to improve the generalizability of results toa broader population. However, the findings of this study may assist policymakers in providingfurther encouragement in the adoption of ESG practices.