The rapidly increasing trend towards Environmental, Social, and Governance (ESG) investing has captured the attention of business, investors, and financial professionals alike. This shift in focus from purely financial returns to a more holistic approach of investing is pushing industry participants to pay closer attention to sustainability-related considerations. The concept of corporate sustainability as measured by ESG factors corresponds to a business approach that focuses on creating long-term value for all stakeholders by integrating environmental, social, and corporate governance considerations into decision-making and operational activities. As the European Union has been placing more emphasis on sustainability, companies in Central and Eastern European (CEE) countries including the three developing economies of the Baltic region – Estonia, Latvia and Lithuania, have been incentivized to improve their ESG performance ratings. As such, this trend is increasingly important for investors in this region, as well as for companies who are looking to increase their ESG compliance level. Additionally, increased ESG investments in CEE can help to drive economic growth and bridge the gap between East and West in terms of investment and economic development level. This dissertation examines the state of ESG practices in the CEE region, with a focus on the Baltic countries. It outlines the current situation in the ESG implementation including different degrees of adoption and transparency measures, compliance with international standards, as well as determines the ESG drivers and existing barriers. Qualitative content analysis supplemented by surveys of investors and corporations are used to reveal the status quo of ESG standards in the Baltics. The outstanding transparency challenges are highlighted by the examination of current ESG rating coverage. Based on an evaluation of academic literature, the relationship between higher ESG implementation and shareholder value is examined. Subsequently, the factors affecting ESG adoption are determined based on expert surveys and literature review. Finally, this research presents an innovative approach to determining the relevant ESG drivers across corporate life cycle stages using Analytical Hierarchy Process (AHP). The findings indicate that AHP is a viable tool to measure the relative significance of ESG catalysts and illustrate that there exist different sets of drivers which have an impact on ESG enactment decisions at different times of a firm's evolution. This thesis offers a practical structure for decision makers who are trying to distinguish and prioritize ESG drivers with an aim to pursue a more extensive ESG implementation in the Baltic economies. This dissertation is written in English and consists of an introduction, five chapters, a conclusion and recommendations section, and a bibliography with 282 sources. It features 41 figures, 23 tables and 8 annexes, and is over 199 pages long, including annexes.