Environmental, social and governance (ESG) has become a popular subject with bigger societal awareness about said factors, which is the reason for its better regulation in the business world. Out of these three areas, there is a big focus on the environmental aspect of companies' business, but the factor that is still being developed is the social factor, which is why it is at the center of this thesis. People make the most important part of the business process, as well as the whole of activities in the market, which is why special attention needs to be directed towards human interaction, information transparency, equality and finally, towards general treatment of people involved in the business process. Data on the theoretical segment and the implementation of sustainable finance and the social factor have been collected from scientific articles and other available literature, while the information on practical implementation of the social factor in the financial sector had been collected through a direct cooperation and communication with the bearers of implementation of the social factor in the financial sector. In the last several years, many innovative financial products have been developed for the purpose of reducing financial exclusion and solving the issues in society, such as equality. At the same time, there are a lot of challenges and risks related to the social factor of ESG, like difficulties with measuring social impact and determining social variables. Although the social factor is the least represented out of the three for said reasons, as time goes by it is becoming more popular, and because of the regulation demands of the European Union, companies and institutions are increasing their efforts to point out their positive impact on the society and its compliance to ESG criteria. This effort of physical and legal entities represents the results of EU taxonomy and other regulation, as well as a step towards better, more sustainable future.