ESG ratings providers will need to know who is accessing their services and how they are being used under new Treasury proposals to regulate providers.
In its 'Future regulatory regime for ESG ratings providers' consultation, which was launched as part of the government's green finance strategy, HM Treasury said its proposed approach "requires ESG ratings providers to understand how the ESG rating they are providing is being used". It added: "This may be through agreements such as contractual relationships between an ESG ratings agency and a user, including licensing agreements (for example benchmark indices) or tailored services (for example metrics targeted at regulated disclosures)." However, not all ESG ratings providers will be ...
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