Improving the reliability, comparability, and transparency of ESG ratings
In June 2023, the EU Commission made a proposal to regulate the market for ESG ratings. We support the EU Commission’s proposal as it is an important step towards improving reliability, comparability, and transparency of ESG ratings and the underlying methodologies and data sources without limiting competition or being overly burdensome for market participants. Although the proposal is well-balanced overall, some adjustments, e.g. with respect to scope, specific transparency requirements and the handling of issuers’ complaints are still necessary.