Global watchdog to target ‘greenwashing’ in first guidance for ESG raters

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IOSCO plans regulatory guidance for firms that rate corporate environmental, social and governance performance

London — A global securities watchdog plans to publish its first regulatory guidance for raters of corporate environmental, social and governance performance in July to stem growing concern among asset managers about overstated green credentials.

“Many on the buy and sellside have signalled very clearly how confusing the multiplicity of different ESG ratings choices can be, again raising serious questions about relevance, about reliability and about greenwashing,” Alder told City & Financial's City Week event on Wednesday. IOSCO members such as the US and the EU would continue working on their own disclosure rules, creating some differences, Alder said.

 

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