The European Securities and Markets Authority (ESMA) published a consultation paper on draft Regulatory Technical Standards (RTS) under the ESG Rating Regulation.
The draft RTS cover the following aspects that apply to ESG rating providers:
- The information that should be provided in the applications for authorization and recognition.
- 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.
- The information that they should disclose to the public, rated items and issuers of rated items, as well as users of ESG ratings.