What is a Good ESG Score? Your Helpful Guide | ESG Data Solutions Pvt. Ltd.
An ESG scores for companies is derived based on how an organization is perceived to operate or on what its ESG Technology 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.
Additionally, since ESG ratings are based on how corporate behaviour are reported, some of their worth comes from highlighting any disconnect between internal company reality and external perception. A reality gap creates a concern, requiring organizations to report thoroughly on ESG aspects in order to maintain an accurate ESG score database.
