In this month's ESG Matters, we discuss the new EU regulatory framework for ESG rating providers. Our Spotlight section brings you up to date on the latest  developments in ESG management, information disclosure, financial regulation and litigation.

Golden Nail:

• New EU regulatory framework for ESG rating providers. The number of available ESG ratings has grown rapidly in recent years in response to investor demand for help in assessing the sustainability performance of potential investments. The European legislator will be the first to introduce a regulatory framework for entities that create ESG ratings, so-called ESG rating providers.ESG ratings – a wide range ESG ratings show the performance of an entity or financial instrument in the area of sustainability using a defined rating system, e.g. what exactly do they mean. For example, an ESG risk assessment assesses a company's exposure to certain ESG risks and their management. There are also ESG assessments that focus on a company's impact on the environment and society, and ESG assessments that assess compliance with certain (international) principles and guidelines.

(Dorine Verheij, Frans van der Eerden, full article on lexology.com)