UK to Introduce Law to Regulate ESG Ratings Providers

The UK government plans to introduce legislation in 2025 to regulate ESG ratings providers, as announced by Chancellor of the Exchequer Rachel Reeves. The new law will place these providers under the supervision of the Financial Conduct Authority (FCA) to address transparency issues in ESG ratings. This move follows a call from the International Organization of Securities Commissions (IOSCO) for improved transparency and oversight in the ESG ratings sector. The FCA had already implemented a voluntary code of conduct, and the new legislation will align with IOSCO’s recommendations to enhance the reliability and comparability of ESG ratings. Sustainable finance groups support the regulation, hoping it will clarify methodologies and improve transparency in ESG ratings. Resources: https://www.esgtoday.com/uk-to-introduce-law-to-regulate-esg-ratings-providers/