Governance data is generally the easiest to optimize in a portfolio because it ismore standardized, quantifiable, and widely disclosedcompared to social and environmental data. Corporate governance indicators, such as board composition, executive compensation, and shareholder rights, are commonly reported in financial statements and regulatory filings.

In contrast, environmental and social data can be moresubjective, complex, and inconsistentdue to varying reporting standards and lack of historical data. For example, carbon emissions (E) and employee well-being (S) often lack standardized disclosures across regions and industries.