International Regulatory Strategy Group
Published 8 Sep 2021
The IRSG ESG workstream has responded to IOSCO’s consultation report on ESG Ratings and Data Product Providers. In the response, the IRSG stresses that it is important that market users and investors can have confidence in ESG ratings when making investment decisions. This is likely to become only more important as the influence of ESG ratings, and rating providers, increases. This is the right time to assess the options for improving transparency, and removing issues (particularly around conflicts of interest and external pressures) that may impair the quality of ESG ratings, and to weigh up the relative benefits of regulation versus international guidelines on best practice.