ISDA and AFME Respond to ESMA Call for Evidence on ESG Ratings

On March 11, 2022, ISDA and the Association for Financial Markets in Europe submitted a joint response on the European Securities and Markets Authority’s (ESMA) call for evidence on environmental, social and governance (ESG) ratings. The associations highlight the importance of avoiding a fragmented approach to regulatory requirements on ESG ratings, noting a report by the International Organization of Securities Commissions on ESG ratings and data product providers should serve as a common baseline on the international level. In the response, the associations highlight that shortcomings on transparency of methodologies and data sources remains a key concern for users of ESG ratings, while regulatory requirements on ESG ratings should not cover ESG products, such as ESG index products.

ESMA is expected to share the stakeholder feedback with the European Commission, which may launch a complementary consultation on ESG ratings.

Documents (1) for ISDA and AFME Respond to ESMA Call for Evidence on ESG Ratings

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