“Global regulators took a first step on Monday to unlock the ‘black box’ of corporate environmental, social and governance (ESG) ratings, suggesting formal oversight of a sector which helps channel trillions of dollars into climate-friendly investment funds.
Despite growing influence, ESG raters and data providers are largely unregulated, lack transparency in their methods, offer uneven coverage and harbour potential conflicts of interest, said the International Organization of Securities Commissions (IOSCO), which groups market regulators from the United States, Europe and Asia.”
[COMMENTARY]I just hope that should the ESG raters be regulated that there is room for differences of opinions between them on any given stock. I do agree, however, that the structure of the ESG data needs more uniformity. That would provide for better cross-rater comparisons on companies.
Regulators to unlock ‘black box’ of ESG corporate ratings, by Kim Kyung-Hoon, July 26, 2021, Reuters, UK.