ESG Data and Ratings Code of Conduct Working Group


The ESG Data and Ratings Working Group (DRWG) is an industry working group mandated by the FCA to develop a voluntary Code of Conduct for ESG data and rating providers. By bringing together the views and expertise of all key stakeholder groups within the ESG data ecosystem, the DRWG will be well-placed to develop a comprehensive, proportionate and globally consistent voluntary Code of Conduct. The Secretariat role will be jointly fulfilled by the International Regulatory Strategy Group (IRSG) and the International Capital Market Association (ICMA).

As per the Terms of Reference, the DRWG will:

  • Develop a globally consistent voluntary Code of Conduct for ESG data and rating providers. In doing so, the DRWG should:
    • Ensure the Code sets out clear, comprehensive and proportionate guidance for ESG data and rating providers, while taking into accountthe needs of all key stakeholder groups within the ESG data ecosystem - including the entities that are the subject of ESG data and rating products/services, and the users of these products/services. 
    • Use the detailed content of IOSCO’s recommendations and key outcomes, building on and elaborating their content where appropriate.
    • Where relevant, promote market convergence towards well-understood and recognised definitions.
  • Consider how the Code should be periodically reviewed so that it continues to reflect best practices and to meet market participants’ expectations until a potential regulatory regime will be established. 

The DRWG had its first meeting of members on the 8th of December 2022 and is working towards June 2022 deadline for a draft Code of Conduct to be out for consultation.