ESG generally refers to environment, society and corporate governance, which is to evaluate the sustainability of corporate operations and the impact on social values ??from the three dimensions of environment, society and corporate governance.

The ESG evaluation system, also known as ESG Ratings, was created by commercial and non-profit organizations to evaluate how a company's commitment, performance, business model and structure are consistent with sustainable development goals.

They are first used by investment firms to screen or evaluate companies in their various funds and portfolios.

Job seekers, clients, and others can also use these ratings when evaluating business relationships, and the rated companies themselves can better understand their strengths, weaknesses, risks, and opportunities.

ESG evaluation system workflow: The ESG rating workflow mainly consists of three parts: first, data collection and information induction, second, indicator setting, scoring and rating, and formation of rating results, and third, indexing the rating results to form a service investment

product.

A rating agency may carry out all of the above work, or may be involved in only part of it.

Because ESG has not yet had a globally unified definition and disclosure standard, each rating system is often based on the ESG disclosure standards of the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), etc., and is based on industry classifications such as MSCI or Shenwan

Select different indicators and construct a methodology to form an evaluation system.

The ESG evaluation system takes the three aspects of environment (Environment), society (Social) and corporate governance (Governance) as the core, and is subdivided into three to four levels of specific indicators for scoring.