EU: ESG Ratings Regulation moves one step forward

The Council of the EU has 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’).

The draft Regulation was published on 8 November 2024 and 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 alert on our Knowledge Portal for more detail and for an overview of the Regulation.

The Council is to formally adopt the draft Regulation, which will then enter into force 20 days after its publication in the Official Journal of the EU. It will apply 18 months following its entry into force.

UPDATE 20/11.2024: The Council of the EU adopted the draft Regulation on 19 November 2024 (see Council press release).