The emergence of sustainability reporting has changed the corporate disclosure environment, particularly in the light of Environmental, Social, and Governance (ESG) factors. This paper examines the trends, models and the effects of sustainability reporting on corporate performance and market valuation. The research uses firm data in different sectors to state that high-quality sustainability reporting is more common among firms with higher Price-to- Earnings (P/E) ratios, indicating a positive relationship between transparent ESG reporting and market valuation. The trend toward consistent and comparable sustainability metrics is further enhanced by the adoption of global standards, such as the Global Reporting Initiative (GRI). Nevertheless, a significant fraction of companies do not have standardized or universal reporting. The results of this study support the strategic importance of sustainability reporting as a means of increasing transparency as well as the trust and corporate value investors place in it in the long-term. The report promotes better regulatory encouragement and industry-wide dedication to obtain more standard and meaningful ESG reports.