What are the three pillars of ESG?

The three pillars are Environmental, Social and Governance. Each covers distinct risks with specific metrics and regulatory triggers.

Environmental addresses carbon emissions across Scope 1, 2 and 3, energy consumption, waste, water use and biodiversity. This pillar carries the most regulatory weight in the UK, with SECR and ESOS requiring mandatory reporting and the GHG Protocol providing the standard methodology.

Social covers workforce conditions, diversity, health and safety, labour rights across supply chains and data privacy. It is increasingly tied to commercial outcomes - public procurement rules like PPN 06/21 require evidence of social performance.

Governance examines board structure, executive pay, business ethics, anti-corruption and risk management frameworks. This is where the most damaging ESG incidents originate and where investor scrutiny is sharpest.