Environmental, social, and governance (ESG) ratings assess a company's or financial instrument's exposure to sustainability risks and its impact on society and the environment. These ratings play a crucial role in building investor confidence in sustainable products and enhancing the broader operational capacity of capital markets. Addressing the issue of reliability, the Commission initiated a regulatory proposal for ESG ratings in 2023 with the aim of improving transparency and integrity of the operations of ESG ratings providers, preventing potential conflicts of interest and facilitating sustainable investment decisions. Following the political agreement between the co-legislators, the regulation was published in the Official Journal of the European Union on December 12, 2024 and will apply from July 2, 2026.

Under the new regulatory framework, ESG rating providers operating in the EU or serving EU clients (including non-EU companies) must be authorized and supervised by ESMA and comply with transparency requirements, in particular with regard to their methodology, sources of information and potential conflicts of interest. This is intended to prevent greenwashing and promote sustainable investments.  

Deutsche Börse Group supports the standardization of ESG ratings and welcomes attempts to increase investor confidence in sustainable products.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.

Environmental, social, and governance (ESG) ratings assess a company's or financial instrument's exposure to sustainability risks and its impact on society and the environment. These ratings play a crucial role in building investor confidence in sustainable products and enhancing the broader operational capacity of capital markets. Addressing the issue of reliability, the Commission initiated a regulatory proposal for ESG ratings in 2023 with the aim of improving transparency and integrity of the operations of ESG ratings providers, preventing potential conflicts of interest and facilitating sustainable investment decisions. Following the political agreement between the co-legislators, the regulation was published in the Official Journal of the European Union on December 12, 2024 and will apply from July 2, 2026.

Under the new regulatory framework, ESG rating providers operating in the EU or serving EU clients (including non-EU companies) must be authorized and supervised by ESMA and comply with transparency requirements, in particular with regard to their methodology, sources of information and potential conflicts of interest. This is intended to prevent greenwashing and promote sustainable investments.  

Deutsche Börse Group supports the standardization of ESG ratings and welcomes attempts to increase investor confidence in sustainable products.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.