ESG factors play an increasingly important role in financial markets, as industry participants integrate ESG into their activities, product offerings and investments.
Firms and consumers increasingly rely on providers of data on such factors, including ESG ratings.
Recognising the importance of ensuring adequate standards of ESG ratings, on June 13, 2023, the European Commission published a proposal for a regulation on the transparency and integrity of ESG rating activities.
This alert memorandum sets out the key points of the Proposal, explores its wider implications, and draws comparisons with parallel developments in the UK.