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What is an ESG Score?

An ESG score is a measure of a company’s exposure to long-term environmental, social, and governance risks that are often overlooked during traditional financial analyses.

Why it matters

Investors are increasingly adopting ESG, and it will continue to become embedded as a part of corporate strategies moving forward. As the market surrounding ESG expands, investors are demanding new tools to assess how companies perform from an ESG standpoint.

Looking at data on an iPad
ESG Score

Where does the data come from?

securities filings
voluntary business disclosures
governmental databases
media reports
academic research

What the ESG Measures

  • Carbon emissions
  • Climate change vulnerability
  • Water sourcing
  • Biodiversity & land use
  • Toxic emissions & waste
  • Packaging material & waste
  • Electronic waste

  • Labor management
  • Worker safety training
  • Supply chain labor standards
  • Product safety & quality
  • Consumer financial protection

  • Composition of the board in terms of diversity & independence
  • Executive compensation
  • Accounting practices
  • Business ethics
  • Tax transparency