EU watchdog says ESG rating firms need rules to stop ‘greenwashing’.
“Steven Maijoor, chair of the bloc’s European Securities and Markets Authority (ESMA) said the supervision of ESG ratings was ‘far from optimal’.
‘The lack of clarity on the methodologies underpinning those scoring mechanisms and their diversity does not contribute to enabling investors to effectively compare investments which are marketed as sustainable, thus contributing to the risk of greenwashing,’ Maijoor told a conference in Dublin.”
[COMMENTARY]Rather than be regulated the ESG ratings’ companies should provide full disclosure of their methodologies and let investors decide which they like!
EU watchdog says ESG rating firms need rules to stop ‘greenwashing’, by Hue Jones, February 12, 2020, Reuters, UK.