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Important news from the world of #ESGRating…

29 February 2024

The European Parliament and Council have recently reached a provisional agreement on new rules for ESG rating activities:

🔍 ESMA will be responsible for overseeing ESG rating providers and ensuring greater transparency on the methodologies used.

📆 Within 18 months of entry into force, the new rules will be applied, providing a new regulatory framework for this important financial area.

🌍 Agencies based abroad will only be able to operate in the EU with European approval or inclusion in the European register of ESG rating providers.

🔍 More transparency on methodology and against conflicts of interest: rating providers will have to explain the weight of each ESG dimension and specify the methodology used.

đź“Š What is ESG rating and why is it important? It is born to evaluate the sustainability profile of a company or financial instrument, measuring exposure to environmental, social, and governance risks and the impact of activities on society and the environment.

#ESMA #UE #Sustainability #Europe #EU #sustainablefinance #trasparency