This study investigates the influence of transformer proximity to aluminium housing on Equivalent Series Resistance (ESR), power loss, and thermal performance. Experimental results confirm that placing a transformer close to a conductive aluminium surface significantly increases ESR, especially at higher frequencies. While increasing the distance using potting material reduces power loss, it compromises thermal performance. In contrast, introducing a ferrite shield between the transformer and the housing effectively minimizes ESR and hence power loss while maintaining efficient heat dissipation. These findings provide practical design insights for optimizing transformer placement in compact, high-frequency power electronics systems.