The Future of Sustainable Data Alliance (FoSDA) has unveiled a position paper addressing policy initiatives aimed at enhancing oversight of ESG ratings. The paper is the culmination of work by FoSDA’s Policy & Regulations Working Group, which contributes to the regulatory and policy discourse within the ESG ratings industry. FoSDA’s position paper supports global regulatory authorities seeking to bring greater transparency to the ESG data and ratings sector. However, it calls for the incorporation of core principles into any education and capacity-building initiatives within the ESG ratings and data space. FoSDA said that it “strongly encourages” policymakers to base new frameworks on the recommendations set out in [International Organization of Securities Commissions’] final report on ‘ESG Rating and Data Products Providers’. Further, it supports proportionate initiatives that seek to provide greater clarity on the market while protecting providers’ analytical independence and the market’s ability to innovate.
