Strategic Advisor on Corporate Responsibility and Sustainability, Business and Human Rights. Highly experienced Board member / Non-Executive Director / Chief Executive Officer / Speaker / Author / Trainer
The final text of the political agreement in the EU for the new regulation of ESG ratings agencies is now published. There has long been demand for ESG ratings agencies to be regulated to ensure standards of good governance; to be transparent with the methodologies they use, so it is possible to understand disparities between different results from providers on the very same companies; and to ensure proper separation between providing ESG ratings and advisory, audit or other business activities, in order to avoid conflicts of interest. The new regulation will make a significant contribution to achieving these objectives. There are two points of wider significance too. First, as someone who has worked to 'cut the clutter' in terms of reforming the landscape on different sustainability reporting from business, proliferation and divergence of ESG ratings has been a serious challenge. This new regulation should be welcomed as a major development towards simplifying and making more coherent the architecture to measure and make transparent corporate sustanability performance. Second, in the entire movement towards creating a sustainable financial system, this is a very important step to strengthen incentives to ensure investment goes towards genuine sustainability objectives. Congratulations to all involved. Thanks NordESG. The full text is at: https://lnkd.in/dEpY3ZyM #ESG #ratings #sustainablefinance
