ISDA and AFME highlight shortcomings in EU’s ESG rating and data products framework

Article summary

The International Swaps and Derivatives Association (ISDA) and the Association for Financial Markets in Europe (AFME) have responded to the European Securities and Markets Authority’s (ESMA) call for evidence on market characteristics for ESG rating providers in the EU. The associations welcomed ESMA’s review of the market and urged it and the European Commission to continue to co-ordinate with other international bodies to avoid a fragmented approach. The associations highlighted various shortcomings in ESG rating and data products they currently use.