Understanding ESG’s Environmental Pillar

The E in ESG takes into account an organisation’s environmental impact and sustainability, focusing on areas such as carbon footprint, resource management and policy.
The environmental pillar of ESG focuses on how an organisation performs with regards to the physical environment, taking areas into account such as energy use, pollution, natural resource utilization, conservation record, the treatment of animals and so on. Given the magnitude of the multitude of crises facing the planet and the increasing severity of environmental risks for companies, the E element of ESG has become more and more relevant.


With governments all over the world pledging, companies are looking more closely than ever at their environmental impact. Transparency on this issue is not just key for investors put also public image. In addition, a transparent environmental policy also helps drive company morale and creates trust.

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