A new regulation establishing a comprehensive framework
for Environmental, Social and Governance (ESG) ratings has been
published. It aims to enhance the transparency and comparability of
ESG assessments across ESG rating providers by prescribing
stringent criteria and mandatory disclosure obligations under the
supervision of ESMA. The new regulation also amends the SFDR with
the addition of a provision that expands the website disclosure
requirement applicable to market participants or financial advisers
which issue and disclose ESG ratings to third parties.
Context
On 12 December 2024, Regulation (EU) 2024/3005 on the
transparency and integrity of Environmental, Social and Governance
(ESG) rating activities (Regulation) was published in the Official
Journal of the EU.
