ESMA issues new Q&As on ESG Ratings Regulation

ESMA published new Q&As clarifying the EU ESG Ratings Regulation, covering consulting activities, notification periods and factual error review access.

The Q&As clarify operational aspects of the ESGRR, including boundaries between rating and consulting activities and the two working day notification process. ESG rating providers and rated entities should recalibrate procedures for pre-publication notifications and factual error challenges.

Directly affects ESG rating providers and rated entities' governance, conflicts management and disclosure timing under ESGRR.

First operational guidance under ESGRR shapes market practice for a newly regulated sector with cross-cutting implications for sustainable finance.

“ESMA published Q&As on the EU ESG Ratings Regulation covering consulting activities to investors or undertakings, application and scope of the two working day notification period, and access to dataset for factual error review.”