A low ESG score is usually fixable within one to two reporting cycles by starting with a materiality assessment, systematic data collection, and clear, measurable targets — companies that treat ESG improvement as an ongoing operational process rather than a one-time disclosure exercise see the most consistent score gains. Rating agencies also reward transparency, so companies with weaker underlying performance but honest, consistent reporting sometimes score better than those with inconsistent or incomplete disclosures.
Start With a Comprehensive ESG Audit
Before improving a low score, you need a clear, objective picture of where you actually stand. A comprehensive ESG audit should scrutinise your environmental footprint (emissions, energy, water, waste), assess your social initiatives (labour practices, diversity, community impact), and evaluate your governance structures (board independence, executive compensation, ethics policies). This baseline audit reveals which specific pillar — environmental, social, or governance — is dragging your overall score down, since improvement efforts are far more effective when targeted rather than spread thin across all three areas at once.
Fix Data Collection Before Fixing Performance
Many companies score poorly not because their underlying practices are weak, but because they lack systematic data to prove them. Rating agencies and BRSR disclosures both depend on measurable data — energy consumption, workforce diversity figures, safety incident rates — and a company with good practices but poor documentation will score lower than one with mediocre practices but excellent records. Building basic monthly or quarterly data tracking across your core ESG metrics is often the fastest, lowest-cost way to see measurable score improvement, since it surfaces existing good practices that were previously invisible to raters.
Identify Your Material ESG Issues
Not every ESG metric matters equally for every company — a materiality assessment identifies which specific issues are most significant to your business and industry, and is the ideal starting point for companies unsure where to focus. A manufacturing company’s material issues typically centre on emissions and safety, while a financial services company’s material issues lean more heavily toward governance and data privacy. Prioritising material issues over generic ESG checklist items produces both better real-world outcomes and better rating agency recognition.
Set Measurable Targets and Track Progress
Once you understand your baseline and material issues, setting precise, measurable goals — such as a specific percentage reduction in emissions intensity or a target for workforce diversity — gives raters something concrete to recognise, rather than vague sustainability commitments. Reporting transparently against these targets over time, even when progress is slower than hoped, tends to be viewed more favourably by rating agencies than an absence of stated goals altogether, since it signals a credible, ongoing commitment rather than one-off messaging.
Engage Directly With Rating Agencies
Most ESG rating agencies, including those operating in India, allow companies to review and respond to their scoring reports, correcting factual errors or providing additional context that wasn’t captured in public disclosures. Engaging proactively with this feedback process, rather than treating your ESG score as something that happens to you passively, often surfaces easy wins — data points that were missed, initiatives that weren’t properly disclosed — that can meaningfully move your score without requiring any operational change at all.
Common Mistakes That Keep ESG Scores Low
Some companies unintentionally hold their own scores down through avoidable errors. Submitting inconsistent data across reporting years — different subsidiary boundaries, different measurement units, changed calculation methods without explanation — makes year-over-year comparison unreliable and raises red flags with raters. Treating ESG reporting as a marketing exercise rather than an operational discipline, with polished narrative but thin underlying data, tends to score worse than plain, well-documented disclosure. Finally, waiting until a mandatory deadline to start data collection, rather than building systems well in advance, often results in rushed, incomplete filings that undersell genuinely good practices simply because there wasn’t time to document them properly.
How Long-Term ESG Score Improvement Compounds
Companies that sustain ESG improvement efforts across multiple reporting cycles typically see compounding benefits beyond the score itself — easier access to green financing at preferential rates, inclusion in ESG-focused institutional investment screens, and stronger positioning when bidding for contracts with corporate buyers who now factor supplier ESG performance into procurement decisions. This compounding effect is one reason treating ESG improvement as a one-off exercise tied to a single low score rarely delivers lasting results; the companies that see the most durable gains treat it as an ongoing operational discipline integrated into normal business planning. For the regulatory side of this process, see our guide on ESG compliance for Indian companies.
Frequently Asked Questions
How quickly can a company improve its ESG score?
Meaningful improvement is typically visible within one to two reporting cycles, particularly when starting from poor data collection rather than poor underlying practices.
What’s the fastest way to improve a low ESG score?
Fixing data collection and documentation gaps is often the fastest improvement, since it surfaces existing good practices that weren’t previously visible to raters.
Should small companies worry about their ESG score?
Companies outside SEBI’s mandatory BRSR requirement can still benefit voluntarily, particularly if they supply to larger corporates that screen suppliers on ESG criteria.
Can I dispute an ESG rating I think is inaccurate?
Yes, most rating agencies allow companies to review and respond to scoring reports, correcting factual errors or adding missing context.
Use our ESG Score Self-Assessment Tool to identify gaps, and read our guide on how ESG ratings and scores are evaluated for more detail on methodology.
Sources and further reading: Securities and Exchange Board of India | Ministry of Corporate Affairs
