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B. Social (S): It emphasizes societal needs and welfare.
C. Governance (G): This concerns the management and decision-making processes of an organization.
Together, these pillars form the term ESG, which is crucial for understanding sustainability in depth.

A. Environment (E): Environment pertains to corporate climate policies, energy consumption, waste,
pollution, and natural resource conservation. It involves the use of resources such as coal, electricity, and water.
This consumption results in waste like carbon emissions, water discharges, and e-wastes, showcasing the
dependency on the environment for operations.

B. Social (S): This focuses on the relationships and reputation an entity maintains with individuals and
institutions in its business communities and the value chain. It encompasses labour relations and diversity
inclusion, emphasizing that companies operate within a diverse society.

C. Governance (G): Governance refers to the internal practices, controls, and procedures an entity uses to
govern itself, make investment decisions, comply with laws, and address stakeholder needs. All entities need
governance.
The above pillars include the following elements as under:
Environment
- Climate Change: Carbon Emissions, Product Carbon Footprints, Financing Environmental Impact, Climate
Change Vulnerability.
- Natural Resources: Water Stress, Biodiversity & Land Use, Raw Material Sourcing.
- Pollution & Waste: Toxic Emissions, Packaging Waste, E-Waste.
- Environment Opportunity: Clean Tech, Green Building, Renewable Energy.
Social
- Human Capital: Labour Management, Health & Safety, Human Capital Development, Supply Chain Labour
Standards.
- Product Liability: Product Safety & Quality, Chemical Safety, Financial Product Safety, Privacy and Data
Security, Responsible Investment.
- Stakeholders Opposition: Controversial Sourcing.
- Social Opportunity: Access to Communication, Finance, Health Care, and Opportunities in Nutrition &
Health.
Governance
- Corporate Governance: Board Diversity, Executive Pay, Ownership, Accounting.
- Corporate Behaviour: Business Ethics, Anti-Competitive Practices, Corruption & Instability, Financial
System Stability.
- Tax: Transparency.
ESG reporting
Environmental, Social and Governance (ESG) reporting: This is all about disclosure of information, data,
metrics that explain the added value in these three areas.
ESG reporting can be both quantitative and qualitative in nature: Quantitative reports tend to describe a
company’s strategy or policy around the relevant topics, while a quantitative approach includes metrics, and
key performance indicators (KPIs) linked to each area in order to measure progress against goals and report on
achievements.
Naturally, a mixed approach: This approach makes use of both qualitative and quantitative information tends
to add the maximum value to the quality of disclosures.

(CNO SDG.040) Sustainable Development Goals
2015 Adoption: In 2015, Sustainable Development was adopted by all United Nations Member states,

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