The work of IOSCO on Environmental, Social and Governance (ESG) ratings and data products providers is complementary to the work on the quality of ESG data and disclosures by issuers, as well as sustainability-related practices, policies, procedures & disclosure in asset management. Eurosif is highly appreciative of IOSCO’s efforts in each of these areas and recognises the interdependencies between the quality of ESG data, ESG ratings and data products, and their use for investment purposes according to sustainability-related practices, policies, procedures & disclosure.
Eurosif fully endorses the IOSCO recommendations on ESG Ratings and Data Products and regards them as a sound basis for further work at international level. The market in ESG ratings and data products has expanded dramatically in recent years as demand for ESG data, ratings, rankings, scores and myriad other products has burgeoned. This growth has been driven by high demand from financial market participants – the principal users of ESG ratings and data products – responding to growing interest in ESG investments and regulatory requirements that mandate the integration of ESG considerations into the investment process.
We are fully aligned with IOSCO’s recommendation that increased transparency be brought to the ESG ratings and data products market – with disclosure of data sources, methodologies and evaluation standards, and conflicts of interest on the part of providers.
Finally, we believe it is important to approach the ESG ratings and data products market holistically and to also consider the use to which such products are put.
Here is the Eurosif full response on the IOSCO Consultation Report on Recommendations ESG Ratings and Data Products Providers.
Here is the Eurosif full response on the IOSCO Consultation Report on Recommendations on Sustainability-related Practices, Policies, Procedures and Disclosure in Asset Management.
Both contributions have been sent to IOSCO as part of the consultation process regarding Sustainability-Related Practices, Policies, Procedures and Disclosure in Asset Management and ESG Ratings and Data products providers.