The London Stock Exchange Group (LSEG) has launched a suite of ESG scores and sustainability analytics to provide more transparency and comparability for financial institutions.
LSEG’s ratings and data division developed the framework which includes a set of standardised indicators, a redesigned materiality matrix and ESG scores with additional risk and impact overlays.
The scores are designed to measure how companies manage ESG risks and opportunities across 12 themes, which are aggregated into three pillars and an overall ESG score. Companies are rated on a scale from 0 to 5, ranging from “not aware” to “leading”.
The model uses 220 standardised indicators and a sustainability-focused materiality framework that combines a revised industry classification with a double materiality approach at the business segment level.
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The methodology is rules-based and does not include analyst judgement, which LSEG said distinguishes the scores from traditional ESG ratings.
The framework aligns with global sustainability standards, including those from the International Sustainability Standards Board, Global Reporting Initiative, Sustainability Accounting Standards Board and the European Sustainability Reporting Standards.
The new ESG scores are supported by additional analytics through a ‘plus’ layer, which incorporates factors such as controversies, sovereign ESG risk and environmental impact signals, including green revenues and sustainable financing.
Elena Philipova, director, sustainability solutions at LSEG, said: “Our customers are consistently looking for sustainability insights they can explain, justify and integrate across the investment, lending and advisory lifecycle. By uniting 25 years of sustainable finance expertise, with datasets trusted by the global financial industry, we’re giving financial institutions the clarity and confidence to meet regulatory expectations, support transition-aligned capital allocations and build AI-ready ESG workflows.”
