How are environmental, social, and governance (ESG) scores measured?

There is no universal way to calculate ESG scores. Various third-party companies calculate ESG scores, and experts typically use unique processes, which means no two rating companies produce the same results.

However, many vendors use a scale of 0 to 100 for ESG scores and describe each range of scores as either poor, average, good, or excellent. For example, a poor score is usually less than 50 and indicates that the company uses no ESG best practices. An excellent score is generally over 70 and suggests that the company performs well in all three areas with little to no problems.