French Regulator AMF Calls for Regulation of ESG Data and Ratings Providers
Providers of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. data, ratings and related services need to be subject to a regulatory framework, according to a statement by France’s financial market regulator, The Autorité des marchés financiers (AMF).
The call for regulation by the AMF comes in response to an ongoing public consultation by the European Commission into the functioning of the ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. ratings market, and into the consideration of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. factors in credit ratings. The consultation, open until June 8, aims to inform the Commission’s initiative to “foster the reliability, trust and comparability of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. ratings by early 2023.”
Demand for ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. data, service and ratings has surged as investors increasingly integrate ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. considerations into the investment process, yet the activities and businesses of the providers are generally not covered by markets and securities regulators.
Calls to bring the sector under regulatory oversight have gained momentum over the past several months. Early last years, EU markets regulator the European Securities and Markets Authority (ESMA) issued a letter to the European Commission, advising that the current unregulated status of the ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. ratings sector and the resulting lack of transparency posed a potential risk to investors. In July 2021, the Commission launched a new Sustainable Finance Strategy, which included a pledge to take action to improve the reliability, comparability and transparency of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. ratings, and subsequently asked ESMA to begin examining the market participants. In November, securities regulator standards setter IOSCO urged regulators to focus on improving transparency in the ESG ratings and data space, and to begin to apply regulatory oversight. ESMA currently has a complementary consultation into the sector underway.
In ESMA’s response to the Commission’s consultation, the regulator set out several recommendations for initiatives targeting the sector. These include proposing that future regulation go beyond covering only ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. ratings, but instead encompass the entire range of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. data, ratings and services, that regulations include transparency into methodologies and data sources, and that supervision be centralised at the European level under ESMA. The AMF also called for ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. data and services providers to be registered with ESMA.
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