Society comments on ESG ratings proposals

The Society responded to the FCA consultation on regulating ESG ratings providers. We strongly welcome the new regime, including improved transparency and opportunities for issuers to correct factual inaccuracies, but we highlight two key areas for refinement: alignment between the UK and EU regimes, and clearer expectations on proportionality for smaller issuers. We also identify gaps relating to notifications of updated ratings and access to full rating reports. Our evidence base shows continued challenges for issuers in managing ESG data and ratings engagement, particularly for small- and mid-caps.

Read the full response here.