Purpose: The purpose of this study is to obtain the possibility of designing an award matrix for pesantren by exploring and analysing the potential application of Environment, Social, and Governance (ESG) aspects. This study aims to identify key indicators relevant to ESG in the context of Pesantren and to assess how environmental sustainability, social responsibility, and good governance implemented. Design/methodology/approach: This study uses a qualitative approach that combines a comprehensive literature review with simulation-based analysis which supports in obtaining the results of the ESG award design for pesantren. Conduct Systematic search using parameters “environment”, “social”, “governance”, “pesantren”, “Indonesia” to get some important aspects in compiling the matrix indicator. Google Scholar and Scopus report 2006-2024 years of publication. Screening and selecting relevant articles by title and abstract to establish relevance. Several ESG methodologies (Refinitiv, Morningstar Sustainalytics, Ecovadis, LSEG) reviewed and equipped with analysis of scientific articles in Indonesia and English language. This step aims to obtain the results of the design of elements, aspects, indicators, case studies by previous ESG researchers and practitioners, and the mechanism for calculating and classifying awards based on the scores obtained from a matrix design. This matrix will be supported by pilot tests based on simulation analysis at AMQ Islamic Boarding School, East Java, Indonesia. Findings: The ESG Award is made possible to give appreciation to pesantren as an educational institution that has a strategic role in sustainable development. An ESG Award Matrix for Pesantren which is each level includes specific criteria tailored to the pesantren context with a total of 12 indicators across 4 environmental indicators, 4 social indicators, 4 governance indicators so three-tier ESG award system in consist of bronze, silver, and gold. Simulation based in AMQ pesantren that received the silver category with a score of 3.55. It suggests AMQ Pesantren is making significant efforts in ESG areas. Particularly in social responsibility based on that score as silver in ESG Award. Research limitations/implications: Empirical research and monitoring-evaluating steps are needed to provide a framework for Pesantren. Further research is possible to measure and improve this ESG Award for Pesantren. Practical implications: to suggests an approach to the development of environment social governance awareness and engagement program to increase capacity, institutions, production, human resources, sustainability also. Originality/value: The novelty in this study is an analysis involving the creation of ESG (Environmental, Social, and Governance) Awards designed specifically for Pesantren in Indonesia. The process includes the development of a comprehensive ESG framework that combines Islamic principles and cultural values that are unique to Pesantren. This framework is designed to introduce and assess and appreciate the sustainability performance of these religious education institutions. This award system is organized in three tiers: Bronze, Silver, and Gold.
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