EU: ESG Ratings Regulation moves one step forward

The Council of the EU published the text of the proposed Regulation on the transparency and integrity of ESG rating activities, and amending Regulation (EU) 2019/2088 and (EU) 2023/2859 (known as the ‘ESG Ratings Regulation’) in November 2024 and it was adopted on 19 November 2024 (see Council press release).

This Regulation has now been published in the OJEU on 12 December 2024 and will be in force from 1 January 2025.  It will apply 18 months following its entry into force - from 2 July 2026.

The Regulation is designed to govern the issuance, distribution and, where relevant, publication of ESG ratings, without being intended to regulate their use. Political agreement was reached on 5 February 2024 – Read our earlier client alert on our Knowledge Portal for more detail and for an overview of the Regulation.