EU, UK and other regulators intensify scrutiny of ESG rating providers

Policymakers in Europe and the UK intend to regulate the industry to boost transparency and consistency, with other jurisdictions taking similar moves, while some ESG rating agencies have already updated parts of their methodologies

EU and UK regulators are getting closer to finalising regulation on ESG ratings and the companies that provide them, though their scope and the level of enforcement are still being debated. Meanwhile, ESG rating agencies ISS, MSCI and Sustainalytics have updated parts of their individual methodologies to better reflect their latest in-house rating views.