On the industry-adjustment of ESG scores
On the industry-adjustment of ESG scores
The availability of industry-unadjusted granular data is also very important.
With industry adjustment, a heavily-polluting firm can be classified as green if it pollutes less than other firms in its heavily-polluting industry.
Check with your data provider where does industry adjustment take place.
For many applications of ESG data, one should be using industry-unadjusted metrics.