Regulation (EU) 2024/3005 on the transparency and integrity of environmental, social and governance rating activities has been published in the Official Journal of the European Union. The Regulation aims to strengthen the reliability and comparability of ESG ratings by improving the transparency and integrity of the operations that ESG ratings providers carry out and by preventing potential conflicts of interest. ESG ratings providers established in the EU will be authorized and supervised by European Securities and Markets Authority and will have to comply with transparency requirements, in particular with regard to their methodology and sources of information. The Regulation also introduces a requirement for the separation of business and activities to prevent conflicts of interest. The Regulation will enter into force on January 2, 2025. It will apply directly across the EU from July 2, 2026.
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