The UK is to unveil plans to regulate ESG ratings providers, according to a report in the Financial Times. The proposal is expected to be announced in January, the report said Whitehall citing sources.
Any such submission would indicate a change of approach by the country’s regulators, who until now have suggested only that firms providing ratings should work to a voluntary code of conduct to help reduce confusion among investors.
ESG ratings have been criticised for offering widely different ratings from each other on the same companies, making it difficult for investors to assess which would best suit their mandates.
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