ESG Ratings Regulation
This Regulation aims to establish a framework for the transparency and integrity of environmental, social and governance (ESG) rating activities, in order to strengthen the independence, comparability, impartiality, systematic nature and quality of ESG ratings, thereby advancing the Union's sustainable finance agenda and supporting the flow of capital towards sustainable investment. This Regulation lays down uniform authorisation, supervisory and organisational requirements for ESG rating providers operating in the Union, establishes an equivalence, endorsement and recognition regime for third-country providers, and sets transparency disclosure obligations for regulated financial undertakings that issue ESG ratings incorporated into financial products.
Timeline
- 30 Dec 2024Entry into force
- 2 Apr 2026AuthoritiesDeadline for Member States to designate a competent authority for the purposes of this Regulation (Article 30(1))
- 2 Jul 2026This Regulation starts to apply (Article 53)
- 2 Aug 2026AuthoritiesDeadline for ESG rating providers already operating in the Union when this Regulation entered into force (other than small providers) to notify ESMA of their intention to continue operating (Article 51)
- 2 Nov 2026AuthoritiesDeadline for those providers to apply to ESMA for authorisation or recognition; small ESG rating providers must also notify ESMA by this date to benefit from the temporary regime (Article 51)
Key facts
- Reference
- Regulation (EU) 2024/3005
- Adopted
- 27 Nov 2024
- Published
- 10 Dec 2024
- Status
- In force
- Topic
- ESG & Governance
- Industries
- Cross-sector, Financial Services
Main compliance requirements
Paid members only
The main compliance requirements, applicability questions and penalties are available in the ZC Smart Compliance Hub. Paid members and clients can sign in to the Hub to view them.
Related legislation
- Amends Regulation (EU) 2019/2088 and Regulation (EU) 2023/2859
- builds on the supervisory framework of Regulation (EC) No 1060/2009 (credit rating agencies)
- related to Regulation (EU) 2020/852 (Taxonomy Regulation), Directive 2013/34/EU (financial statements) and Regulation (EU) 2016/1011 (Benchmarks Regulation).
Official sources
Regulation (EU) 2024/3005 on the transparency and integrity of Environmental, Social and Governance (ESG) rating activities