The importance of environmental performance, social responsibility, and corporate governance (ESG) has surged in recent years, driven by the growing demand for sustainable development. This paper explores the impact of ESG implementation on the profitability of banks in the UK, utilizing panel data from 2015 to 2022. ESG metrics and financial performance data for 12 banks listed on the London Stock Exchange are sourced from Bloomberg Terminal. Key findings from the Generalised Least Squares (GLS) model indicate that ESG’s influence on Return on Assets (ROA) is insignificant. Conversely, the environmental score demonstrates a significant negative effect on Return on Equity (ROE). Additionally, both ESG and environmental scores negatively impact Net Interest Margin (NIM). These findings incorporate important implications for the banking sector, suggesting that banks should adopt a more nuanced strategy for ESG integration, as different components of ESG can affect financial performance in distinct ways. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2026.