A Bloomberg Professional Services Offering Methodology and Field Information 0 ESG Environmental and Social Scores Bloomberg Terminal 7 Bloomberg ESG Environmental and Social Scores Contents Introduction .................................................................................................................................................................. 2 Approach to Bloomberg Environmental and Social Scores ............................................................................................. 3 Issue Priorities and Score Template Inputs ..................................................................................................................... 5 Score Framework and Issue Priorities ........................................................................................................................ 8 Score Framework and Structure ..................................................................................................................................... 8 Issue Priorities ................................................................................................................................................................ 9 Scoring Methodology ................................................................................................................................................. 11 Principles of Quantitative ES Scores Methodology ....................................................................................................... 11 Parametric Approach to Scoring ................................................................................................................................... 11 Field Attributes.............................................................................................................................................................. 13 Field Transformation ..................................................................................................................................................... 14 Field Scoring ................................................................................................................................................................ 14 Score Aggregation...................................................................................................................................................... 25 Sub-Issue Scores ......................................................................................................................................................... 25 Issue Scores and Disclosure Factors ............................................................................................................................ 25 Technical Description ................................................................................................................................................... 26 Pillar Scores ................................................................................................................................................................. 30 Pillar Disclosure ............................................................................................................................................................ 31 Enhancements and Limitations ................................................................................................................................. 32 Endnote ........................................................................................................................................................................ 33 1 Version Release Date Description December 2020 Methodology for Environmental and Social Scores Bloomberg ESG Environmental and Social Scores Introduction In recent years, environmental, social and governance (ESG) issues have increasingly influenced and impacted business decisions. Businesses need to manage the effects of climate change and shifting societal norms, among other key issues, making transparency, disclosure, and measurability of ESG issues paramount. Advances in corporate reporting on ESG issues should help investors and other stakeholders better understand how businesses can and will respond to this dynamic landscape – but only if the information can be evaluated easily and transparently. In this document, Bloomberg outlines the methodology for proprietary Environmental and Social Scores (ES Scores). This initiative, through which we will release scores for all sec