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The Environmental, Social and Governance (ESG) Ratings Activities Regulation A Commentary

The Environmental, Social and Governance (ESG) Ratings Activities Regulation A Commentary

  • Author:
  • Publisher: Edward Elgar Publishing
  • ISBN: 9781035338610
  • Published In: December 2025
  • Format: Hardback
  • Jurisdiction: U.K. ? Disclaimer:
    Countri(es) stated herein are used as reference only

List Price: HKD 2,145.00

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  • Description 
  • Contents 

Details

This authoritative Commentary examines the EU regulatory regime for environmental, social and governance (ESG) ratings providers. In doing so, it provides a deep dive into the regulatory framework, evaluating the operation of ESG providers and their transparency and disclosure mechanisms, and outlines loopholes in EU Regulation.

Key Features:

  • Article-by-article analysis of the EU regulatory framework of ESG ratings providers and green investments
  • Surveys the most salient issues related to the role of the ESG ratings providers in the financial market
  • Outlines the loopholes of EU regulation on ESG ratings and advances suggestions for enhancing the current regulatory system
  • Evaluates the operation of ESG ratings providers in the EU and their transparency and disclosure, including misleading reports

This Commentary is an invaluable resource for practitioners and legal professionals in law firms, global rating firms, commercial and investment banks, international financial institutions, and prudential regulatory agencies. It is also an essential point of reference for scholars and students researching law and the economic aspects of sustainable and green finance.

Preface xix
Table of cases xxiv
Table of legislation xxv

TITLE I SUBJECT MATTER, SCOPE AND DEFINITIONS
1.
Subject matter 2
Andrea Miglionico
2.
Scope 10
Andrea Miglionico
3.
Definitions 20
Andrea Miglionico

TITLE II PROVISION OF ESG RATINGS IN THE UNION
4.
Requirements to operate in the Union 32
Iain MacNeil
5.
Temporary regime for small ESG rating providers 35
Iain MacNeil
Chapter 1 Authorization of ESG rating providers established in the union to operate in
the Union
6.
Application for authorization to operate in the Union 39
Iain MacNeil
7.
Examination by ESMA of the application for authorization to operate in the Union as an ESG
rating provider 41
Iain MacNeil
8.
Decision to grant or refuse authorization to operate in the Union and notification of that
decision 43
Iain MacNeil
9.
Suspension or withdrawal of authorization 45
Iain MacNeil
Chapter 2 Equivalence, endorsement and recognition of ESG rating providers
established outside the Union to operate in the Union
10.
Equivalence regime 48
Iain MacNeil
11.
Endorsement of ESG ratings provided by ESG rating providers established outside the
Union 52
Iain MacNeil
12.
Recognition of ESG rating providers established outside the Union 56
Iain MacNeil
13.
Cooperation arrangements 60
Iain MacNeil
Chapter 3 Register and accessibility of information
14.
Register of ESG rating providers and accessibility of information on the European single
access point 62
Andrea Miglionico

TITLE III INTEGRITY AND RELIABILITY OF ESG RATING ACTIVITIES
Chapter 1 Organizational requirements, processes and documents concerning governance
15.
General principles 73
Iris H-Y Chiu
16.
Separation of business and activities 101
Iris H-Y Chiu
17.
Rating analysts, employees and other persons involved in the provision of ESG ratings 112
Irene-marié Esser
18.
Record-keeping requirements 115
Iris H-Y Chiu
19.
Complaints-handling mechanism 119
Iris H-Y Chiu
20.
Reasoned concerns 126
Iris H-Y Chiu
21.
Outsourcing 130
Iris H-Y Chiu
22.
Exemptions from governance requirements 134
Iris H-Y Chiu
Chapter 2 Transparency requirements
23.
Disclosure to the public of the methodologies, models and key rating assumptions used in
ESG rating activities 142
Irene-marié Esser
24.
Disclosures to users of ESG ratings, rated items and issuers of rated items 148
Irene-marié Esser
Chapter 3 Independence and conflicts of interest
25.
Independence and avoidance of conflicts of interest 153
Irene-marié Esser
26.
Management of potential conflicts of interest arising from employees 157
Irene-marié Esser
27.
Fair, reasonable, transparent and non-discriminatory treatment of users of ESG ratings 159
Irene-marié Esser
Chapter 4 Supervision by ESMA
Section 1: General principles
28.
Non-interference with the contents of ratings or methodologies 163
Francesco De Pascalis
29.
ESMA 169
Francesco De Pascalis
30.
Competent authorities 176
Francesco De Pascalis
31.
Exercise of the powers referred to in Articles 32, 33 and 34 182
Francesco De Pascalis
32.
Requests for information 187
Francesco De Pascalis
33.
General investigations 193
Francesco De Pascalis
34.
On-site inspections 201
Francesco De Pascalis
Section 2: Supervisory measures and penalties
35.
Supervisory measures by ESMA 209
Andrea Miglionico
36.
Fines 217
Andrea Miglionico
37.
Periodic penalty payments 221
Andrea Miglionico
38.
Disclosure, nature, enforcement and allocation of fines and periodic penalty payments 226
Andrea Miglionico
Section 3: Procedures and review
39.
Procedural rules for taking supervisory measures and imposing fines 231
Andrea Miglionico
40.
Hearing of persons subject to investigations 236
Andrea Miglionico
41.
Review by the Court of Justice of the European Union 240
Andrea Miglionico
Section 4: Fees and delegation
42.
Supervisory fees 244
Andrea Miglionico
Chapter 5 Cooperation between ESMA and the competent authorities
43.
Delegation of tasks by ESMA to the competent authorities 248
Andrea Miglionico
44.
Exchange of information 252
Andrea Miglionico
45.
Notifications and suspension requests by the competent authorities 256
Andrea Miglionico
46.
Professional secrecy 260
Andrea Miglionico

TITLE IV DELEGATED AND IMPLEMENTING ACTS
47.
Exercise and revocation of the delegation and objections to delegated acts 265
Andrea Miglionico
48.
Committee procedure 270
Andrea Miglionico
49.
Amendment to Regulation (EU) 2019/2088 274
Andrea Miglionico
50.
Amendment to Regulation (EU) 2023/2859 278
Andrea Miglionico

TITLE V TRANSITIONAL AND FINAL PROVISIONS
51.
Transitional provisions 281
Andrea Miglionico
52.
Review 284
Andrea Miglionico
53.
Entry into force and application 288
Andrea Miglionico

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