Clarity Glossary for Project and Portfolio Management

ESG Score

An ESG Score measures performance against environmental, social, and governance criteria.

Explanation

An ESG Score evaluates how an organization, investment, or initiative performs in relation to environmental, social, and governanceGovernanceGovernance establishes the rules, responsibilities, and decision-making structures that guide an organization. objectives.

Organizations increasingly use ESG metrics to support sustainable decision-making, regulatory compliance, responsible investment strategies, and corporate accountability.

Within portfolio managementPortfolio ManagementPortfolio management is the strategic management of a set of projects, programs, or investments within a company., ESG Scores can serve as an additional prioritization criterion alongside financial value, risk, and strategic contribution.

Synonyms and Abbreviations

  • Environmental, Social and Governance Score (ESG Score): Sustainability performance indicator

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