This study shows that good ESG performance provides a solid basis for financial stability and reduced risk. Our framework highlights how Social and Governance performance have a close correlation with the outcome of the COVID-19 pandemic in the various economies of our selected universe. Additionally, this study should serve as a driving force for continuous investment in a sustainable and responsible array of public policies. Economies that suffered the most from the COVID-19 pandemic were also those whose sovereign spreads widened during the pandemic, putting further financial pressure on their economies.