Global code of conduct debuts for ESG ratings
- Media Manager
- Dec 14, 2023
- 1 min read
Advisor.ca
Written By: James Langton
Published: December 14th, 2023
Regulators welcome voluntary code for ESG ratings, data providers
With regulators increasingly focused on greenwashing risks, industry trade group the International Capital Market Association (ICMA) launched a new voluntary code of conduct for ESG ratings and data providers.
The code, developed at the behest of the U.K.’s Financial Conduct Authority (FCA), aims to promote market transparency and bolster governance, controls and conflict of interest management.
It also follows the recommendations of the International Organization of Securities Commissions, with a view to enabling the code to be adopted internationally.
“Today’s launch marks an important step in further promoting internationally consistent standards across sustainable finance,” said Nicholas Pfaff, deputy CEO and head of sustainable finance with the ICMA, in a release.
“In the growing market for ESG ratings and data products, the code will be vital for increasing transparency and trust,” he said.
The FCA welcomed the launch of the code of conduct. “With its strong focus on international consistency, this industry-owned code will play a key role in increasing transparency and trust in the ESG data and ratings market,” said Sacha Sadan, director of ESG with the FCA, in a statement.
