The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today launched a consultation on proposed amendments to Commission Delegated Regulation (EU) No 447/2012 and to Annex I of the Credit Rating Agencies Regulation (CRAR).

The objective of the proposals is to ensure a better incorporation of ESG factors in the credit rating methodologies and subsequent disclosure to the public, as well as to enhance transparency and credibility in the credit rating process.

In particular, they aim to:

ensure that the relevance of ESG factors within credit rating methodologies is subject to systematic documentation;
enhance disclosures on the relevance of ESG factors in credit ratings and rating outlooks;
deliver a more robust and transparent credit rating process through the consistent application of credit rating methodologies.