European Commission takes action to pave the way towards a harmonization of ESG-Ratings – an overview

Awareness of environmental (E), social (S) and governance (G) dimensions of business activities, and the measurement thereof, are gaining significant traction, not only in our society, but especially for financial intermediaries.

Awareness of environmental (E), social (S) and governance (G) dimensions of business activities, and the measurement thereof, are gaining significant traction, not only in our society, but especially for financial intermediaries. Through their investment portfolio, financial intermediaries are not only directly, but also indirectly subject to the material risks arising from rapid developments and disruptive changes within the three dimensions of sustainability. Furthermore, financial institutions assume a key position in driving sustainable economic development. A key instrument to measure and steer sustainability risks are ESG ratings, however, those have received quite some criticism, which needs to be addressed in order to make ESG ratings a trustworthy and reliable measurement and management tool.

Get background information and further details on this topic in the free registration area of PwC Plus.