LSEG ESG Scores Methodology - October 2024

Sep 20, 2026

Environmental, Social and Governance (ESG) scores from LSEG explain how transparent, accurate and comparable ESG data supports sustainable finance decisions. The methodology details the full scoring pipeline, including ESG category scores, a materiality matrix, overall ESG and pillar scores, controversies scoring, and the ESG combined (ESGC) score adjusted for significant ESG controversies. It also describes update frequency, global coverage, percentile rank interpretation, benchmarking by LSEG Business Classifications and incorporation country, and the definitions and examples in multiple appendices.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages33

Reading Time1 h 23 min

AccessFree to download

Executive summary

Data process

Frequency of updates

Global coverage

Scores overview

Scores structure

Scores calculation methodology

Step 1: ESG category scores

Step 2: Materiality matrix

Step 3: Overall ESG score calculation and pillar score

Step 4: Controversies scores calculation

Step 5: ESGC score

Step 6: Feedback and Changes

Appendix A-Category Score Example

Appendix B – ESG Magnitude (Materiality) Matrix

Appendix C – ESG Category Weights Matrix

Appendix D – Pillar Scoring Example

Appendix E – Pillar Weights Matrix

Appendix F – Category Score Definitions

Appendix G – Controversies data Measures

Appendix H – Controversies Scoring Example

Environmental, Social and Governance scores from LSEG October 2024 Contents Executive summary.................................................................................................................................................. 3 Data process............................................................................................................................................................ 5 Frequency of updates .............................................................................................................................................. 6 Global coverage ....................................................................................................................................................... 6 Scores overview....................................................................................................................................................... 7 Scores structure ....................................................................................................................................................... 8 Scores calculation methodology.............................................................................................................................. 10 Step 1: ESG category scores .................................................................................................................................. 10 Step 2: Materiality matrix......................................................................................................................................... 11 Step 3: Overall ESG score calculation and pillar score ........................................................................................... 15 Step 4: Controversies scores calculation ................................................................................................................ 16 Step 5: ESGC score................................................................................................................................................ 17 Step 6: Feedback and Changes..............................................................................................................................18 Appendix A-Category Score Example .............................................................................................................................. 19 Appendix B – ESG Magnitude (Materiality) Matrix ..................................................................................................21 Appendix C – ESG Category Weights Matrix ..........................................................................................................24 Appendix D – Pillar Scoring Example......................................................................................................................26 Appendix E – Pillar Weights Matrix .........................................................................................................................27 Appendix F – Category Score Definitions................................................................................................................29 Appendix G – Controversies data Measures...........................................................................................................30 Appendix H – Controversies Scoring Example .......................................................................................................32 Executive summary LSEG recognises the increasingly critical importance of transparent, accurate and comparable environmental, social and governance (ESG) data and analytics for the financial industry. We strive to be the trusted and preferred partner in the transition to sustainable finance and are committed to bringing to the market an array of best-in-class data, analytics and workflow solutions, which allow customers to use LSEG data as the backbone of their investment processes. LSEG offers one of th

FAQs

What is the purpose of LSEG ESG scores?

LSEG ESG scores are designed to measure a company’s relative ESG performance, commitment and effectiveness using company-reported data. The scores aim to be transparent, objective and comparable for the financial industry.

How are the ESG category scores converted into overall ESG and pillar scores?

The process starts with ESG category scores, then applies a materiality matrix to reflect ESG magnitude (materiality) weightings. Next, overall ESG score and pillar scores are calculated using the established criteria and data model.

How do controversies affect the ESGC combined score?

The methodology includes controversies scoring and uses it to discount the overall ESG combined (ESGC) score when significant ESG controversies impact covered corporations. This ensures ESGC reflects both performance and controversy severity.

Sep 20, 2026

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