EU scrutiny into future regulation of ESG ratings continues

This morning, ESMA published a Call for Evidence on market characteristics for ESG rating providers.

The Call for Evidence’s purpose is to develop a picture of the size, structure, resourcing, revenues and product offerings of the different ESG rating providers operating in the EU. The call is mainly addressed to three target groups:

• ESG rating providers;
• users of ESG ratings; and
• entities subject to rating assessment of ESG rating providers.

It is anticipated that this consultation will be followed by a complementary consultation on this topic from the Commission which will seek stakeholder views about the use of ESG ratings by market participants and the functioning and dynamics of the market, potential issues, but also help inform on potential costs of an intervention at EU level.

The call for evidence closes on 11 March 2022.

Based on the feedback received, ESMA intends to provide the Commission with an overview of the market for ESG rating providers present or operating in the EU before the end of Q2 2022.

ESMA’s press release is available here.