LSEG ESG

Overview

LSEG ESG (formerly Refinitiv) evaluates companies' environmental, social, and governance (ESG) performance, focusing on their capacity and commitment to sustainability. The assessments are tailored to account for industry-specific materiality and capacity. As of 2025, LSEG ESG scores are derived from over 870 data points, ratios, and analytics spread across 10 main themes. These scores aim to measure a company's relative performance on fundamental ESG attributes, commitment, and effectiveness across ESG factors.

Scope & Adoption

LSEG ESG scores are designed to transparently and objectively measure a company's relative ESG performance based on publicly reported data. The scoring framework covers key themes such as emissions, environmental product innovation, human rights, shareholders, and more. As of 2025, LSEG ESG provides scores for over 18,000 global companies, including constituents of major indices like the S&P 500, FTSE 100, and NASDAQ 100.

Why It Matters

Achieving a strong LSEG ESG score is particularly important as it sets a precedent for success among other ESG rating agencies. LSEG's comprehensive data collection is utilized by various stakeholders, signaling to companies that a strong LSEG score enhances their visibility and credibility in the ESG landscape. Moreover, the integration of ESG scores into LSEG's broader suite of financial data and analytics tools provides investors with a more comprehensive view of a company's performance.

Scoring & How to Report

Companies are scored on a scale from 0 (low) to 100 (high), segmented into four quartiles:

• 0–25: First Quartile (Poor)
• 26–50: Second Quartile (Satisfactory)
• 51–75: Third Quartile (Good)
• 76–100: Fourth Quartile (Excellent)

Each company receives individual scores across 10 main themes, also scored out of 100. These themes are grouped into three ESG pillars: Environmental, Social, and Governance. The pillar scores are calculated using a weighted average relative rating, with the 'E' and 'S' pillars weighted according to their relevance to the specific industry, while 'G' weights remain consistent across all industries.‍

The scoring methodology incorporates unique industry-level materiality weightings and includes an ESG controversies overlay to account for significant ESG-related incidents. Percentile ranking is used to produce category scores, ensuring comparability across companies.

Refinitiv with Nossa Data

Through Nossa Data’s Materiality Mapping feature, firms can analyse any document (i.e., Sustainability Report) through AI to measure and assess how they perform for key ESG topics. As LSEG ESG heavily uses AI to measure companies’ ESG performance, Nossa Data’s Materiality Mapping feature is a strong indicator of the documents data visibility, helping identify areas for score improvement and benchmarking against peers.

Additionally, Nossa Data can upload policies to the LSEG ESG contribute portal, and suggest to clients what they can do to plug any gaps.

Start your LSEG ESG Journey with Nossa Data