Experts have advised the EU to set up a certification and supervisory regime for ESG data and ratings providers, as well as developing industry standards.
London-based think tank SustainAbility has made eight recommendations on ESG data and disclosure as part of a 214-page report on the "state of play" for sustainability-related products and services, commissioned by the European Commission last year.
The firm, which is owned by consultancy ERM, released its findings last week.
It proposes industry standards covering “the overall objectives of the rating and data provider, appropriate governance structures and codes of conduct, means of engagement with companies, the process for correcting errors and updating assessments, the transparency of methodologies, the consideration of materiality and risk of bias”.
Growing demand for sustainability-related products has led to a flurry of market entrants and an “uptick in merger and acquisition …