Regulation on transparency and integrity of environmental, social and governance (ESG) ratings was published in the Official Journal of the EU

Today, the Regulation (EU) 2024/3005 on transparency and integrity of environmental, social and governance (ESG) ratings was published in the Official Journal of the EU.

• ESG ratings provide an opinion on the sustainability profile of a company or financial instrument, assessing its impact on society and the environment and its exposure to risks associated with sustainability issues. They have an increasingly important impact on the functioning of capital markets and on investor confidence in sustainable investment products.

• The Regulation introduces a common regulatory approach to strengthen the integrity, transparency, comparability where possible, accountability, good governance and independence of ESG rating activities, thereby contributing to the transparency and quality of ESG ratings and to the Union's sustainable finance agenda. It aims to contribute to the smooth functioning of the internal market while achieving a high level of consumer and investor protection and preventing greenwashing and other types of misinformation, including social washing, through the introduction of transparency requirements related to ESG ratings and rules on the organisation and conduct of ESG rating providers.

 As far as the next steps are concerned, the regulation enters into force on the 20th day following its publication in the Official Journal of the EU and applies from 2 July 2026.

Source: Link to the text in the OJEU.