ESGMethodology
Scoring Logic · Data Sources · Weighting · Validation
Philosophy
Our Approach to ESG Scoring
The CleanIndex ESG methodology is built on one principle: a company’s ESG score should reflect reality, not marketing.
Every score produced by CleanIndex is generated through a structured, transparent process that combines self-reported company data, independent verification, industry benchmarking, and expert review. There is no black box. This document explains exactly how we calculate scores, what data we use, how we weight different factors, and how we validate the results.
Framework
The Three Scoring Dimensions
This dimension measures a company’s impact on the natural environment.
- Carbon emissions — Scope 1, 2, and 3
- Energy consumption and renewable energy percentage
- Water usage and management
- Waste generation and recycling rates
- Pollution and hazardous materials management
- Biodiversity impact where applicable
- Environmental targets and progress toward those targets
Environmental factors carry the highest regulatory urgency in 2026 due to frameworks like CSRD, SEC climate rules, and ISSB standards. Investor demand for climate data also makes this the most commercially consequential dimension.
This dimension measures how a company treats people, both inside and outside the organization.
- Employee diversity and inclusion metrics
- Pay equity and living wage practices
- Health and safety records and policies
- Employee training and development investment
- Supply chain labor practices and human rights due diligence
- Community engagement and social impact programs
- Customer data privacy and protection
Social factors directly affect talent acquisition, retention, brand trust, and regulatory compliance. The “S” in ESG is where most companies have the widest gap between perception and reality, making rigorous measurement essential.
This dimension measures how transparently and ethically a company is managed.
- Board composition, independence, and diversity
- Executive compensation structure and ratios
- Anti-corruption and anti-bribery policies
- Whistleblower protection mechanisms
- Shareholder rights and stakeholder engagement
- Tax transparency
- Regulatory compliance history
Governance is the foundation that enables strong environmental and social performance. Companies with poor governance rarely sustain good outcomes in the other two dimensions. The lower weight reflects fewer data points relative to E and S categories, not lower importance.
| Dimension | Weight | Primary Focus |
|---|---|---|
| Environmental | 40% | Impact on the natural environment |
| Social | 35% | Treatment of people inside and outside the company |
| Governance | 25% | Transparency, ethics, and management accountability |
Process
Scoring Logic
The company submits text and data through the CleanIndex portal. Every questionnaire input field requires explanatory text and a score from 1 (foundational) to 4 (leadership).
Raw data is normalized to account for company size, industry, and geography. A manufacturing company’s carbon emissions are evaluated against manufacturing benchmarks, not against a software company’s emissions. This ensures scores are fair and comparable.
Normalized data is compared against industry-specific benchmarks sourced from publicly available regulatory databases, academic research, and CleanIndex’s proprietary data from certified companies. Performance is scored relative to where the company falls within its peer group.
Raw data is reviewed by a CleanIndex ESG expert. Each answer receives a corrected score from 0 to 4 based on the benchmark comparison. 0 means no data provided. 2 means industry average. 4 means the company leads its industry in that specific indicator.
Individual indicator scores are aggregated within each dimension using predefined weights. Not all indicators within a dimension carry equal weight. Within the Environmental dimension, for example, carbon emissions carry more weight than water usage.
The three dimension scores are combined using the 40/35/25 weighting to produce a single overall ESG score from 0 to 100. This score determines the certification tier.
| Score | Meaning | Certification Tier |
|---|---|---|
| 0 | No data provided | Not Certified |
| 1–25% | Basic ESG practices in place | Tier 1: I |
| 26–50% | Established systems and measurable targets | Tier 2: I+ |
| 51–75% | Above industry average performance | Tier 3: I++ |
| 75–100% | Industry-leading across all dimensions | Tier 4: I+++ |
Inputs
Data Sources
Primary Data (Company-Submitted)
This is the core data set provided by the company through the CleanIndex portal. It includes text, operational metrics, policies, employee data, governance documents, and environmental measurements. Primary data carries the most weight in the scoring process.
Per certification cycleSecondary Data (Public Sources)
CleanIndex cross-references company submissions against publicly available data including regulatory filings, annual reports, sustainability reports, government databases, and industry association records. This secondary data layer helps identify inconsistencies and validates self-reported claims.
Continuous monitoringBenchmarking Data (Industry Databases)
CleanIndex maintains a proprietary benchmarking database built from certified company data, academic research, regulatory publications, and recognized frameworks including GRI, ESRS, ISSB, SASB, and CDP. This database is updated quarterly to reflect evolving standards and industry performance trends.
Quarterly| Data Category | Sources | Update Frequency |
|---|---|---|
| Primary Data (Company-Submitted) | Company submissions via CleanIndex portal | Per certification cycle |
| Secondary Data (Public Sources) | Regulatory filings, annual reports, news, public databases | Continuous monitoring |
| Benchmarking Data (Industry Databases) | GRI, ESRS, ISSB, SASB, CDP, certified company data | Quarterly |
Integrity
Validation Process
Automated Consistency Checks
The CleanIndex platform automatically flags data submissions that contain mathematical inconsistencies, missing required fields, or values that fall outside reasonable ranges for the company’s size and industry.
Cross-Reference Verification
Submitted data is compared against public records and previously submitted data from prior certification cycles. Significant discrepancies are flagged for human review.
Expert Analyst Review
A CleanIndex ESG expert analyst reviews every submission. The analyst evaluates text and data quality, checks for completeness, and may request clarification or additional documentation from the company.
Materiality Confirmation
The analyst confirms that the company has reported on all topics material to its industry and operations, as defined by the CleanIndex materiality matrix. Companies that omit material topics receive adjusted scores reflecting the missing data.
Questions About Our Methodology?
Contact our methodology team directly. Transparency is not just a feature of our methodology. It is the foundation.
Contact Methodology Team