The European Securities and Markets Authority (ESMA) has launched a public consultation on new rules designed to regulate ESG rating providers.
The draft RTS covers a number of aspects that apply to ESG rating providers. This includes the information that should be provided in the applications for authorisation and recognition.
It also covers the measures and safeguards that should be put in place to mitigate risks of conflicts of interest within ESG rating providers who carry out activities other than the provision of ESG ratings. Finally, the RTS covers the information that they should disclose to the public, rated items and issuers of rated items, as well as users of ESG ratings.
Stakeholders are invited to provide their feedback by 20 June 2025. ESMA aims to finalise the RTS based on the input received and submit them to the European Commission by October 2025.
The regulator is especially encouraging participation from entities planning to register as ESG rating providers, along with financial market participants, users of ESG ratings, and rated organisations.
The consultation paper can be found here.
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