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Methodology, revised on

A score is only worth something if it can be explained.

We publish how we assess: structure, scales, sources, validation, governance and limitations of the ESGreen Score and the IRC-ESGreen (Climate Risk Index).

Anatomy of a data pointIllustrative data
Entity
Exemplo Pecuária Ltda.
Finding
Environmental embargo notice on a linked rural property
Source
IBAMAEmbargoed areas, public database
Collected
Layer
Socio-environmental and embargoes, Environmental dimension of the ESGreen Score
Methodology
score-v3.2
Illustrative example: an occurrence traced back to its source, with collection date and methodology version.

Transparency is part of the product.

Evidence, not declarations. Every number carries a source, a date and a version.

  • Traceable to the source.

    Every result can be traced back to its source, with collection date and methodology version.

  • Named scale and explicit direction.

    The ESGreen Score and the IRC-ESGreen have scales running in opposite directions. Every reading shows the scale name and direction.

  • Versioned and dated.

    The methodology is versioned and every IRC-ESGreen run is dated.

  • Tested against what was observed.

    The IRC-ESGreen was validated on a real portfolio and compared with events that actually happened.

  • Input, not decision.

    ESGreen delivers risk, value and a suggested action. The decision always belongs to the institution.

These principles underpin the Verification stage of the Monitor, Report, Verify and Decide cycle.

Two scales, two directions

Always read the scale name before the number.

ESGreen Score

Scale
0 to 1,000
Direction
The higher, the lower the risk.
Measures
a company's ESG and climate risk, by CNPJ.
Illustrative data

799 / 1.000

the higher, the lower the risk

IRC-ESGreen

Scale
0 to 100
Direction
The higher, the greater the risk.
Measures
projected physical climate risk per land parcel, contract and portfolio.
Bands: the higher, the greater the risk
  1. 0–25 Very low
  2. 26–40 Low
  3. 41–60 Medium
  4. 61–75 High
  5. 76–100 Critical

ESGreen Score 2.0

The ESGreen Score 2.0 is an ESG and climate risk indicator per company. It consolidates public and private information into a comparable score, read across 5 dimensions and published with the Confidence Index.

Fact sheet

Scale
0 to 1,000. The higher, the lower the risk.
Risk bands
High risk from 0 to 300, medium risk from 301 to 750 and low risk above 750
Unit of analysis
Company (CNPJ). Partners and officers are covered by the individuals track.
Structure
12 risk layers organized into 5 dimensions: Legal, Tax, Environmental, Integrity and Governance, and Climate
Trust
Confidence Index from 0 to 100, published with the score, labeled consolidated, partial or preliminary. ESGreen only publishes a score when there is a sufficient basis.
Maturity
Proven ESG maturity adds points to the score. Those who did not respond lose nothing.
Sources
70+ public, regulatory and global sources
Update
Monthly recalculation of the entire base and with every relevant new fact, with monthly history
Reading time
Numeric value, risk band, Confidence Index and breakdown by dimension and by layer
Use
Foundation of ESGreen Pre-assessment, Monitoring and Evidence Assessment, and ESG pillar of the IRC-ESGreen
It is not
Credit rating, probability of default or investment recommendation

ESGreen Score 2.0 principles

Missing data is not penalized.
Missing information does not become a bad score. The score reflects what is known about the company, and what is missing shows up in the Confidence Index.
The score comes with a Confidence Index.
Every Score comes with a Confidence Index from 0 to 100, labeled consolidated, partial or preliminary. The team knows how much it can rely on the score for the decision.
Only publishes with a sufficient basis.
ESGreen only publishes a score when there is a sufficient basis. While the basis is being completed, the company appears as “collecting data”.
Proven facts weigh more than indications.
Proven serious facts, such as being on the list of employers using slave-like labor, an active sanction or an irregular registration status, cap the score regardless of the rest of the profile. Indications, such as an ongoing lawsuit, count in the dimension where they appear, without setting the score on their own.
Maturity adds and never subtracts.
ESG maturity proven in the Evidence Assessment adds points to the score. Those who did not respond lose nothing, and maturity never erases a proven serious fact.

The 12 layers, organized into 5 dimensions

Legal (2)

  • Critical lawsuits
  • Occupational health and safety

Tax (1)

  • Tax compliance

Environmental (2)

  • Socio-environmental and embargoes
  • Environmental violations

Integrity and Governance (5)

  • Global risk lists
  • Integrity and anti-corruption
  • Corporate structure
  • Registration data and CNAE
  • News and adverse media

Climate (1)

  • Climate risks

ESG maturity (adds points, never subtracts)

  • ESG compliance and performance history

Each layer brings together signals from specific sources and feeds a dimension. Each dimension appears separately in the score, to show where the risk comes from.

How to read the Score

The Score is presented as a numeric value, with the scale direction, the risk band and the Confidence Index. A higher value indicates lower risk. The breakdown by dimension and by layer shows where the risk comes from, and the monthly history shows when it changed.

ESGreen Score risk bands the higher, the lower the risk
  1. High risk 0 to 300 More ESG alerts.
  2. Medium risk 301 to 750 Moderate alerts that call for follow-up.
  3. Low risk Above 750 Fewer ESG alerts.

The bands are the same ones the platform shows. The band is an input for the institution's policy, which makes the decision.

Explore the ESGreen Score

IRC-ESGreen: Climate Risk Index

A climate risk index per land parcel, operation and portfolio, from 0 to 100. The higher, the greater the risk.

Fact sheet

Scale
0 to 100. The higher, the greater the risk.
Unit of analysis
Land parcel (by coordinate) → contract → member or client → portfolio
Composition
IRC = Climate + ESG + Operational
Horizons
hist, 7, 15, 30, 60 and 90 days
Spatial resolution
~5 km
Forecast type
Probabilistic ensemble forecast
Update
Climate data updated daily; index recalculated with every run
Record
Every run dated; methodology versioned
Outputs
Index, exposure in reais and a suggested action per operation

IRC = Climate + ESG + Operational

Climate
Rain, water deficit, frost, extreme temperature and wind by coordinate, weighted by crop stage, in windows of 7 to 90 days.
ESG
The operator's ESGreen Score by CNPJ or CPF, built from 70+ auditable, traceable sources.
Operational
Type, collateral, coverage and history of the operation and of the account holder or member.

The weighting between the three pillars is described in the methodology note.

Bands

Scale of 0 to 100: the higher, the greater the risk
  1. 0–25 Very low
  2. 26–40 Low
  3. 41–60 Medium
  4. 61–75 High
  5. 76–100 Critical

Horizons and runs

Each horizon is a window projected from the run date. “hist” is the historical baseline, used as the reference for the 7, 15, 30, 60 and 90-day horizons.

RUN 09/30/2026, METHODOLOGY irc-v1.0 Illustrative data

The climate component uses forecast models from the NVIDIA Earth-2 ecosystem. ESGreen is a member of NVIDIA Inception.

Outputs: risk + value + action, on the same line

The analyst does not need to interpret a climate model. They get risk, value and visibility.

Index
from 0 to 100, per land parcel, contract and portfolio.
R$ exposed
financial exposure in reais.
1 action
monitor, require insurance, review the limit, strengthen collateral, provision or block.
Three exposure scenarios in reais Illustrative data
  1. FavorableR$ 1,88 mi
  2. BaseR$ 2,36 mi
  3. SevereR$ 3,06 mi

Portfolio climate exposure over the horizon analyzed (example). Not a forecast of accounting loss.

The suggested action is an operational recommendation. The credit, underwriting or provisioning decision belongs to the institution.

How the IRC-ESGreen was tested

  • Real rural credit portfolio.

    414 contracts, 1,023 land parcels and 160 cities in PR, SC and RS, in the portfolio of a credit cooperative in southern Brazil.

  • Frost in Caxias do Sul.

    A −1.6 °C frost forecast for July 14 in Caxias do Sul, identified 12 days in advance.

  • Events in RS (Apr–May 2026).

    The April 20, 2026 run pointed to two waves of instability over Rio Grande do Sul. The May 1, 2026 event recorded 324 mm in seven hours in Rosário do Sul. In the study, which included ten companies in the South and Southeast, the signals arrived up to 18 days in advance.

  • Historical exposure in the field study.

    94.3% of the portfolio analyzed showed some level of exposure to extreme climate events in the previous two years, in a study covering more than 1,000 areas and properties in southern Brazil.

ZARC and IRC-ESGreen

ZARC and IRC-ESGreen
Official zoning (ZARC)IRC-ESGreen
Static, by municipality and by crop season.Dynamic, per land parcel, recalculated with every run.

Cross-referencing with a dynamic analysis can reveal exposures that aggregate zoning does not show at the operation level. The comparison requires a methodological basis, a sample and statistical evidence for the subset analyzed.

Explore the IRC-ESGreen

Evidence Assessment: a maturity score, not a rating

ESGreen Evidence Assessment measures a company's ESG maturity with a questionnaire adapted to its size and CNAE (Brazilian industry classification). Each answer is backed by documents, reviewed with AI support for consistency and fit with the criterion. The result is a maturity score, with an annual history.

  • 400+ ESG criteria by company size and CNAE
  • AI-assisted document validation
  • Alignment with the 17 UN Sustainable Development Goals
  • Annual progress history

The maturity score uses evidence provided by the assessed company itself. It is not a credit rating, certification or legal opinion.

Explore Evidence Assessment

70+ public, regulatory and global sources

Every data point with source, collection date and version.

SOURCE: IBAMA, UPDATED 09/30/2026 08:53, METHODOLOGY score-v3.2 Illustrative data

Source groups
GroupExamples
Registration and corporate structureFederal Revenue Service (Receita Federal): CNPJ, CNAE, registration status, legal nature and shareholder structure; politically exposed persons
TaxTax clearance certificates; federal tax debt roll (Dívida Ativa)
LegalCNJ and courts: critical lawsuits
Environmental and territorialIBAMA and ICMBio (violations and embargoes), INPE, MapBiomas, SEEG, IBGE
Land tenureSICAR/CAR, permanent preservation areas (MMA), Indigenous lands (FUNAI), quilombola territories (INCRA)
LaborMTE (employer registry), workplace accident reports (CAT)
Domestic restrictive listsCEIS, CNEP, Ibama, TCU, CVM
International sanctionsOFAC, United Kingdom, European Union, Interpol, UN
News and mediaContinuous scanning of press sources
ClimateClimate forecast models with data updated daily
Client-provided dataOperation data submitted by the institution (IRC Operational pillar) and documents submitted by the assessed company (Evidence Assessment)

Update frequency varies with each originating agency's publication schedule. The collection date is recorded on every data point.

Methodological references

Global
GRI, UN Global Compact, TCFD, World Economic Forum, MSCI, Sustainalytics, CDP, IFRS, SASB
Domestic
Central Bank of Brazil, CVM, ISE B3, FEBRABAN, ANBIMA, ABNT

References used in developing the methodology. Mentioning them does not imply partnership, endorsement, validation or certification by these institutions.

Model governance

How we keep results explainable, reproducible and auditable.

  • Versioning.

    Every methodology change creates a new version, and every result states the version used.

  • Dated runs.

    Every IRC-ESGreen run is dated, and each horizon is a window projected from that date.

  • Traceability.

    Every result can be traced back to its source, with collection date.

  • Validation against what was observed.

    Results compared with events that occurred, such as the Caxias do Sul and Rio Grande do Sul cases described above.

  • Separation between data and decision.

    ESGreen delivers risk, value and a suggested action. Credit policy, underwriting and the final decision belong to the institution.

Information security, privacy and LGPD: See the Trust page

Limitations you should know about

  • Data depends on the source.

    Incomplete, outdated or erroneous records at the originating agency are reflected in the result. The date of each data point makes it possible to assess the lag.

  • Coverage varies by source.

    Not every source covers the entire country or every type of company with the same depth.

  • Forecasts are probabilistic.

    IRC-ESGreen uncertainty grows with the horizon. A high index indicates a greater risk of impact, not certainty of an event.

  • Validation scope.

    The published IRC-ESGreen validation refers to rural credit portfolios in PR, SC and RS. Other uses, regions and crops require their own scoping and testing.

  • Spatial resolution.

    Local phenomena smaller than the ~5 km resolution may not be captured.

  • Operation data.

    The Operational pillar depends on the quality of the data submitted by the institution.

  • Scenarios are examples of exposure.

    The amounts in reais describe the portfolio's exposure over the horizon analyzed. They are not a forecast of accounting loss, provision or insurance claim.

  • Self-declaration in the Evidence Assessment.

    The maturity score starts from documents submitted by the assessed company, checked for consistency and fit with the criterion.

ESGreen's results are inputs for the institution's decisions. They do not replace the institution's own analysis, independent audit or legal advice.

Methodology note

The summary on this page is open. The methodology note details how the ESGreen Score and the IRC-ESGreen are built, for risk, model validation and audit teams.

  • ESGreen Score breakdown by dimension and layer
  • How the IRC-ESGreen exposure in reais is calculated
  • Source catalog with update frequency
  • Validation results
  • Version log

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Frequently asked questions

Short answers to the most common questions.

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Why do the ESGreen Score and the IRC-ESGreen have scales running in opposite directions?

Because they measure different things. The ESGreen Score, from 0 to 1,000, measures a company's (CNPJ) ESG and climate risk: the higher, the lower the risk. The IRC-ESGreen, from 0 to 100, measures the projected climate risk of a land parcel, contract or portfolio: the higher, the greater the risk. Every reading shows the scale name and direction.

Is the ESGreen Score a credit rating?

No. The ESGreen Score, the IRC-ESGreen and ESGreen's indices are assessments based on public and regulatory data and on proprietary models. They are not a credit rating, investment recommendation or legal opinion and should be used as input for the institution's own decisions.

How often are the Score and the IRC updated?

The ESGreen Score is recalculated every month for the entire base and with every relevant new fact identified by continuous monitoring. The IRC-ESGreen uses climate data updated daily and is recalculated with every run, and each run has a recorded date.

How does the institution audit an ESGreen result?

Every result can be traced back to its source, with collection date and methodology version. For the IRC-ESGreen, the run date and the horizon are recorded. This lets the auditor retrace the path from the number back to its origin.

Does the IRC-ESGreen replace ZARC?

No. ZARC is the official zoning: static, by municipality and by crop season. The IRC-ESGreen is dynamic, calculated per land parcel and recalculated with every run. Cross-referencing the two readings can reveal exposures that aggregate zoning does not show at the operation level.

How are the IRC-ESGreen pillars combined?

The index combines three pillars: Climate, ESG and Operational. The Climate pillar uses a coordinate-level forecast weighted by crop stage; the ESG pillar uses the operator's ESGreen Score; the Operational pillar uses the operation's data. The weighting between the pillars is described in the methodology note.

Have a question about the methodology?

In a 30-minute conversation, an ESGreen specialist shows how a result is built, from source to number.

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An ESGreen specialist replies within one business day to schedule a time.