What are the three pillars of ESG?

Written by Editorial Team | Last Updated: August 2026

Environmental, Social, and Governance (ESG) criteria form a comprehensive framework utilized by institutional investors and corporations to evaluate sustainability and ethical impact. The first pillar, Environmental, assesses a company's ecological footprint, including carbon emissions, energy efficiency, waste management, water conservation, and climate change risk mitigation. The second pillar, Social, examines how an enterprise manages relationships with its workforce, suppliers, customers, and local communities, focusing on labor standards, human rights, diversity, and employee safety. The third pillar, Governance, evaluates corporate leadership structures, executive compensation transparency, board independence, shareholder voting rights, internal controls, and rigorous anti-corruption policies.

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