Global Watchdog To Tackle Greenwashing With ESG Ratings Guidance
A global securities watchdog plans to publish its first regulatory guidance for firms that rate corporate environment, social and governance (ESG) performance.
IOSCO – the International Organization of Securities Commissions – expects to publish a report mid-July. Ashley Alder, chair of the IOSCO body that groups securities regulators from the United States, Europe and Asia, says that many countries have no rules for ESG raters.
IOSCO is working with the International Financial Reporting Standards (IFRS) Foundation on setting up a new body by November to write mandatory global standards for company disclosures on climate change.
The watchdog also wants asset managers to incorporate more meaningful climate-related considerations into their risk management as the companies in which they invest face more stringent ESG disclosure rules.