Listed

SUCCESSFUL ROUNDTABLE ABOUT ESG RATINGS

01-06-2022

On 1 June, GUBERNA organised a roundtable dedicated to the topic of ESG ratings. Those ratings are opinions provided by specialised agencies about the performance of listed companies on environmental, social and governance criteria.  

Around 20 people took part in the roundtable, including representatives of listed companies, financial institutions, and service providers in the field of finance and sustainability. The participants shared their experiences with ESG ratings and discussed potential ways to improve them. Key messages are:  

  • There is a lack of reliability and transparency from ESG rating providers.  

  • ESG ratings are used internally by companies, helping them to assess their progress on the path towards sustainable business practices.  

  • There should be a distinction between short-term ratings and long-term ratings.  

  • A greater harmonisation and clarity of regulations is a must.  

  • Regarding the work of ESG rating providers, greater standardisation and transparency are required, as well as more engagement with the listed companies.  

  • Last but not least, any regulatory intervention should prevent greenwashing and promote genuine action by companies on ESG factors.  

GUBERNA used the input of the roundtable to answer to the public consultation of the European Commission on the matter. Based on the results of this consultation, the European Commission will consider possible actions to improve the functioning of the ESG ratings market.  

In the coming weeks, GUBERNA will also issue a reflection note on ESG ratings. Stay tuned!