The CFA UK ESG manual explains that scorecards are acustomizable toolthat allow analysts
totranslate qualitative insights into structured, numerical assessments. They are particularly useful
where third-party ESG ratings are unavailable, such as with private companies or sovereign entities.
“Scorecards can be used to assess ESG risk and opportunity… A custom ESG self-assessment tool that
reflects the sector-specific risk issues… is created… These scorecards translate qualitative judgments
into numerical scores.”
Thus, scorecards are flexible tools, usable for both private companies and sovereigns, making option
B the most accurate.
Reference:CFA UK Level 4 Certificate in ESG Investing – Official Training Manual (2021), Chapter 7:
ESG Analysis, Valuation and Integration, Section 7.1.6
