What is an ESG score?

David Banks
Authored by David Banks
Posted: Thursday, December 23, 2021 - 22:09

The investment landscape has evolved and the world has to evolve with it. As administrations and businesses worldwide look towards more ethical and sustainable methods of operation and working, the investment sector is also changing and is now evolving to cater sustainability.

Investors, managers, and even job-seekers are preferring entities that exhibit care and consideration for the environment and society. Such holistic approach towards the operations allows the operations to become more sustainable with minimal impact on the environment allowing us to leave behind a better planet for the coming generations.

Evalutaing Operations and Sustainability - ESG Score

While evaluating an entity for sustainability might sound very ethical and noble, it is not an easy task. Thankfully companies like GRESB have taken a more proactive approach towards sustainability and have created a global benchmark that can guage the performance of various businesses, organizations, and public entities allowing the stakeholders to make more informed and relevant decisions.

GRESB ESG Score (Environmental, Social and Governance Score) allows for a uniform platform that can help evaluate businesses and industries at a glance. The ESG score is derived from key performance data extracted from the public statements of the entities and is carefully reviewed to give a more fair and authentic view of information.

ESG Score - Who Is It For?

ESG score can be used by anyone and everyone. This includes all the stakeholders of different organizations that are linked and wish for the improvement of it. Companies, fund managers, and even asset operators or people merely looking to invest are also make use of the ESG score to guage the level of dedication that the organization is showing towards sustainable development.

ESG Score - Trusted Worldwide

GRESB set out on a journey towards sustainable reports when no one was ready to acknowledge that absence of sustainability is even a problem. The ESG score is trusted by more than 2200 fund managers, companies, and asset operators who actively utilize it to make key decisions.

With over 140 investment partners, the popularity of ESG score is steadily rising and the initiatives worldwide by different manufacturers and organizations to exhibit actual sustainable growth is making it even more popular.

GRESB solutions are trusted by 98% of investors to guage the environmental, social, and governance factors of organizations and while it can help investors find the ideal investment opportunity, it can also help organizations identify areas of improvement that have been left avoided.

The whole GRESB framework is standardized and is acknowledged and recognized by both internal managers as well as external stakeholders that use it to paint a more comprehensive picture of the company’s operations.

Should You Trust ESG Score?

Definitely. ESG score is the industry leading marker that creates a benchmark and evaluates a company against that benchmark. The process is highly sophisticated and depends upon key information disclosed by the organization that is translated into meaningful actionable figures making it a highly dependable and trustworthy score.