There is growing scrutiny towards ESG ratings, with a general expectation that governments will regulate this area. Meanwhile, a number of countries and industry bodies are setting out non-binding guidelines or codes of conduct, which are seen as a stepping stone to bring trust and clarity to sustainability scores and data.
The voluntary Code of Conduct for ESG Ratings and Data Products Providers, established by the International Capital Market Association and the International Regulatory Strategy Group, is an example in this direction.
