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An ESG scores for companies is derived based on how an organization is perceived to operate or on what its ESG-related behaviour is reported. As with business reputation development, there is a disconnect between fact and perception. While a corporation may have a robust policy on carbon emissions and waste reduction or a transparent, performance-based promotion system, it will not affect its ESG score database if such information is not publicly available.

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To define ESG Score, an organization’s ESG score is a numerical representation of how it performs across a broad variety of environmental, social, and governance (ESG) issues. An ESG score is a mechanism for organizations to internally measure and understand their ESG performance and the performance of their broader business ecosystem.
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