A Sustainable Investment in Journalism

A sustainable business requires diverse revenue streams. ESG Investor now operates a subscription service as of Tuesday 14th May. To find out more please get in touch with our subscription team on subscriptions@esginvestor.net

Transparency Key to ESG Ratings Rules – Eurosif

Responding to the European Commission’s public consultation on the functioning of the ESG ratings market in the EU and ESG factors in credit ratings, the European Sustainable Investment Forum (Eurosif) emphasised the importance of ensuring maximum transparency of the data methodologies of third party vendors. “Any regulatory intervention should introduce strong transparency requirements about the monitoring and managing of actual and potential conflicts of interests,” the response said. Scores and ratings currently provided to investors by third parties are largely informed by “opinions”, Eurosif noted, but achieving “full comparability and corelation between ratings should not be the stated aimed of any regulatory intervention”. Some of the differences in scores will likely disappear as a growing number of companies are expected to produce more granular reports on sustainability risks and impacts, Eurosif added. “The main objective of any regulatory intervention should be to bring more transparency and robustness on the ESG ratings provided to the market, thereby creating stronger market incentives to increase the quality of ratings and services made available to investors,” Eurosif said. The consultation closes today (10 June). 

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top