ESMA consults on draft RTS under ESG Rating Regulation
The European Securities and Markets Authority (ESMA) has published a consultation paper on draft regulatory technical standards (RTS) under the Regulation (EU) 2024/3005 on the transparency and integrity of environmental, social and governance (ESG) rating activities (ESG Rating Regulation). ESMA’s proposals set out the information requirements for applications for authorisation and recognition of ESG rating providers, the measures and safeguards to mitigate conflicts of interest for providers engaging in activities beyond the provision of ESG ratings, and the disclosure obligations to ensure that the necessary information is made available to the public, rated items, issuers and users of ESG ratings. The proposals are designed to enhance the integrity, transparency, comparability, and independence of ESG rating activities, while also aiming to simplify procedures and reduce burdens for smaller providers. Responses are sought by 20 June 2025, with the expectation of publishing a final report in Q4 2025 and submitting the draft RTS to the European Commission by the end of October 2025.