The London Stock Exchange Group (LSEG) announced today the launch of LSEG Sustainability Ratings and Data, a new suite of ESG scores and sustainability analytics, aimed at enabling investors and financial institutions to measure how effectively companies manage material ESG risks and opportunities to support capital allocation decisions, benchmarking and engagement.
According to LSEG, the new solutions are being launched to help financial institutions meet the growing need to embed ESG considerations into automated and AI-powered workflows to meet sustainability reporting and regulatory needs, with the new ESG scores aligned with leading global sustainability frameworks and regulations such as ISSB, GRI, SASB and ESRS.
Rather than incorporating analyst judgement, LSEG said that the new ESG scores rely on rules based methodology and inputs, incorporating a set of 220 standardized indicators, and a “sustainability-first materiality matrix” which combine a redesigned industry classification with a double materiality approach at a business segment level. The dataset covers more than 16,000 companies, and over 1 million fixed income instruments, with metrics based on more than 2,000 underlying data points.
The scores rate companies on a scale of 0 to 5, assessing management of material ESG risks and opportunities across 12 themes, including climate transition, energy & resource use, biodiversity, water use, waste & pollution, labor relations, health & safety, human rights & community, board & engagement, shareholder rights, conduct & anti-corruption and tax transparency & accounting.
The new suite also includes ESG Scores Plus, which also incorporates controversies, sovereign ESG risk and positive environmental impact signals such as green revenues and sustainable financing, to extend analysis beyond traditional ESG assessments.
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.”
