Weighted ESG score
Formula
Weighted ESG score
Weighted ESG Score = (Weight of E × Environment score) + (Weight of S × Social score) + (Weight of G × Governance score), where the three weights add up to 100%
Variables
| Environment, Social and Governance scores | Pillar scores on a common scale, for example 0 to 100, built from the underlying indicators |
| Weights of E, S and G | The share of the total score given to each pillar. Raters usually set these by industry, so a cement company's environment weight is higher than an IT company's |
Finding the inputs
Pillar scores and weights come from the rating provider's report or methodology. SEBI-registered providers disclose their methodology at summary level. To build your own score, take the underlying data from the BRSR (and BRSR Core for assured figures) and set weights based on your own view of materiality for the sector.
Reading the number
The overall score is only as meaningful as the weights. A company can move from "average" to "good" with no change in its pillar scores if the weights change. When two providers disagree, check whether the gap comes from different pillar scores (measurement) or from different weights. Research suggests measurement differences are by far the larger cause.
Illustrative example
From the research
A Comparative Financial Analysis of Three Listed Companies
Three IT services leaders, five years of numbers: similar growth, very different margins and returns on capital, and their October 2026 valuations.
MarketsIPO Issue Price vs. Listing Price vs. Subsequent Performance
Seven of India's most talked-about IPOs since 2021, tracked from issue price to listing to October 2026. Buying on listing day lost money in six of seven.
ValuationPaytm: Valuing a Company With No Clean Comparable
Paytm is part payments processor, part device business, part loan distributor. Why no single peer fits, and how to value it in parts and in reverse.