The EU proposal for a Regulation on the transparency and integrity of ESG rating activities on 13 June 2023: the missing piece of sustainable finance regulation

Step by step the EU is building an impressive road map on Sustainable Finance. After the EU Taxonomy Regulation, the SFDR (Sustainable Finance Disclosure Regulation), the EU Green Bonds Standards, ESG rating activities are the object of all attention. Indeed, ESG ratings play an important role in helping companies and financial institutions integrate sustainability into their decision-making. This proposal of 13 June 2023 for a Regulation on the transparency and integrity of ESG rating activities is therefore an essential component of the general European sustainable finance framework. Impartiality, transparency of methodologies, reliability, comparability, supervision by ESMA, a register of approved providers and the publishing of any sanctions online are the main tools of this text, with the aim of making the European ESG rating market more attractive.