ESG's three pillars - Environmental, Social, and Governance - serve as the foundational framework for evaluating a company's sustainability and impact on the natural environment, people and communities, and management practices
Categories under the three ESG pillars:
The environmental pillar includes categories
- Climate Change and Carbon Emissions
- Energy Efficiency and Resource Management
- Pollution and Waste Management
- Water Management
Biodiversity and Land Use. These categories aim to evaluate a company's impact on the natural environment and assess its ability to mitigate risks related to environmental issues.
The social pillar includes categories:
- Labor and Human Rights, Diversity and Inclusion
- Health and Safety
- Supply Chain Management and Community Engagement
These categories evaluate a company's impact on people and communities, including employees, customers, suppliers, and the broader society.
The Governance pillar includes categories:
- Board Structure and Composition
- Executive Compensation
- Shareholder Rights
- Anti-Corruption and Bribery
- Ethics and Transparency
These categories aim to evaluate a company's management practices and accountability, including the role of the board of directors, executive compensation, and transparency in decision-making.
Owners can customize and add their pillars and categories based on their specific sustainability criteria and goals.