The integration of Environmental, Social, and Governance (ESG) principles is critical for promoting sustainability in Malaysia's construction sector. However, a significant gap exists in empirically validated methods for measuring the efficacy and impact of these practices on project outcomes. This study aims to evaluate the influence of ESG factors on project effectiveness. A quantitative approach was employed, utilizing Partial Least Squares Structural Equation Modelling (PLS-SEM) to analyse data from a structured survey of construction professionals. The findings reveal that Environmental and Social factors have a significant positive impact on project effectiveness, with Environmental practices being the strongest predictor (β = 0.996, p < .001). Governance, while not showing a direct impact, plays a crucial indirect role by enabling robust Social and Environmental practices. The study concludes that strategic integration of ESG principles, particularly environmental and social dimensions, is essential for enhancing project performance and advancing sustainable development in the Malaysian construction industry. These insights offer valuable guidance for industry practitioners, policymakers, and academics seeking to bolster ESG adoption.