Overview
ESG rating agencies include traditional rating agencies and some boutique ESG rating agencies. The common ESG rating activities include ESG rating, ESG ranking, ESG data, and ESG metric.
ESG Ratings Regulations
ESG ratings can provide guidance for companies to improve sustainable disclosure and help investors establish sustainable investment portfolios. Regulatory agencies in numerous jurisdictions around the world begin to establish rules for ESG rating companies and their products.
The current important ESG rating code of conduct is issued by the International Capital Market Association, which provides the market with a framework for establishing a transparent, efficient, and trustworthy ESG rating system through voluntary compliance.
Some regulators have issued relevant regulatory policies based on ICMA’s framework. For example, Hong Kong SFC and ICMA jointly developed the Hong Kong ESG Rating and Data Product Supplier Code of Conduct. It is expected that as ESG develops in the future, these voluntary conduct may gradually transform into legally effective regulations.
Sovereign ESG Ratings
Unlike traditional corporate and financial ESG ratings, sovereign ESG ratings are used to measure a country’s ESG rating, which in turn involves asset allocation. The evaluation system and indicators of sovereign ESG ratings differ significantly from traditional ESG ratings.
With the development of ESG, sovereign ESG ratings may become a part of sovereign ratings, playing a decisive role in the overall ESG rating in jurisdictions.
International Capital Market Association Releases Code of Conduct for ESG Ratings and Data Products Providers
International Capital Market Association releases the Code of Conduct for ESG Ratings and Data Products Providers
Monetary Authority of Singapore Releases Code of Conduct for ESG Ratings and Data Products
The Monetary Authority of Singapore (MAS) has released Code of Conduct on ESG ratings and data products
Hong Kong SFC Plans to Regulate ESG Ratings and Data Products
The Hong Kong Securities and Futures Commission (SFC) plans to regulate ESG ratings and data products
S&P Stops Releasing ESG Credit Indicators
Standard & Poor’s ) said that it will stop releasing new ESG credit indicators from now on and will no longer update past indicators
ESG Data and Ratings Working Group Releases Code of Conduct
The ESG Data and Ratings Working Group has issued a code of conduct
Monetary Authority of Singapore Proposes Regulation on ESG Rating Services
Regulation on ESG Rating Services The Monetary Authority of Singapore has released regulation on ESG rating services, which are intended to develop industry codes of
EU Proposes Regulation on ESG Rating Services
The European Union stated in its recent sustainable finance policy that it requires ESG rating services to meet the authorization and supervision of the European Securities and Markets Authority (ESMA)
ERM Releases ESG Rating Agencies Report
ERM, an international sustainability consulting company, released a report on ESG rating agencies, analyzing the current development of ESG rating agencies from both investors and enterprises, and proposing measures to improve the ESG rating ecosystem