ESMA launches consultation on ESG rating standards, focusing on transparency, conflict mitigation, and robust disclosure requirements, deadline set for 20 June 2025

This move comes in response to growing concerns about the transparency and potential conflicts of interest in how ESG ratings are developed and used by market participants. The proposed standards outline the information ESG rating providers must include in their applications for authorisation, the safeguards they should implement to manage conflicts of interest—particularly when they engage in other commercial activities…