Targeted consultation on the functioning of the ESG ratings market in the European Union and on the consideration of ESG factors in credit ratings

Target group

The main stakeholders identified are

1. ESG rating providers
2. CRAs
3. investors
4. companies
5. public authorities including supervisors
6. civil society including NGOs, academics

Other interested stakeholders are welcome to contribute.

Objective of the consultation

The targeted consultation on environmental, social, and governance (ESG) ratings and sustainability factors in credit ratings is an integral part of the renewed sustainable finance strategy adopted in July 2021. Both credit ratings and ESG ratings are opinions provided by specialised entities and used by financial institutions and professional investors.

ESG ratings generally assess the impact of environmental, social, and governance factors on a company and a company’s impact on the outside world. Credit ratings assess the creditworthiness of companies or financial instruments by providing an opinion on the risk of default of a company.

This consultation will help the Commission gain a better insight on the functioning of the market for ESG ratings, as well as better understand how credit rating agencies (CRAs) incorporate ESG risks in their creditworthiness assessment. Responses from market participants will feed into an impact assessment that will evaluate whether a possible policy initiative on ESG ratings and on sustainability factors in credit ratings is needed. These actions are expected to contribute to the achievement of the European green deal objectives by improving the quality of information on which basis investors, businesses and other stakeholders take decisions impacting the transition to a sustainable economy. We encourage all interested.

How to submit your response

Please note that in order to ensure a fair and transparent consultation process responses should be submitted through the online questionnaire.

Consultation outcome

Summary report

Contributions to the consultation

Reference documents

Related links

• Call for evidence accompanying this consultation
• EU labels for benchmarks (climate, ESG) and benchmarks’ ESG disclosures
• Regulating credit rating agencies

Contact

Contact email address: fisma-esg-ratings@ec.europa.eu