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EU passes new rules for ESG raters (2024)
| Environmental, social, and corporate governance |
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| • What is ESG? • Enacted ESG legislation • Arguments for and against ESG • Opposition to ESG • Federal ESG rules • ESG legislation tracker • Economy and Society: Ballotpedia's weekly ESG newsletter |
Even as the EU postponed the scheduled vote on ESG liability, regulators did manage to pass new rules governing ESG rating services:
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EU states and the European Parliament reached a deal late on Monday on the bloc's first ever set of rules to regulate ESG ratings of company sustainability credentials, which guide trillions of investment dollars globally. The bloc is introducing more rigour into environmental, social and governance (ESG) investing as regulators suspect 'greenwashing', or companies over-inflating their sustainability profile. Under the incoming rules, hitherto unregulated ESG ratings providers in the European Union will have to be authorised and supervised by the European Securities and Markets Authority. Raters based outside the bloc will need to have their ratings endorsed by a rater regulated in the EU. Raters will have to explicitly disclose if their ratings cover how a company's operations affect the environment or social factors such as human rights, and not just the impact of ESG on a company's bottom line.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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