In the sustainable finance ecosystem, ESG ratings are an inevitable ingredient for investors seeking long-term value creation and society value addition in their investment portfolios. Increasing dependence on ratings, however, comes the increasing need for greater oversight from regulatory bodies as the onus lies more with them to provide an air of transparency, consistency, and accountability. End The requirement for standardized methodologies to address discrepancies across ratings.
How global regulations, like the EU's Sustainable Finance Disclosure Regulation (SFDR), are shaping the market.The implications of increased scrutiny for rating providers and investors alike.
I find this push for more clarity and trust in ESG assessments encouraging as an advocate for environmental science and sustainability.
It is a reminder that sustainable practices need a foundation of robust and credible data.
What are your thoughts on how regulation is impacting the future of ESG ratings?