AFEP’s requests, as expressed in its response to the Commission consultation, are based on the following observations:
- Increasing importance of ESG ratings, and ESG data more generally, to meet new regulatory requirements and the demands of investors and other users;
- Unregulated market, highly concentrated and dominated by American players who do not always take sufficient account of European, sectoral or national specificities;
- Low level of maturity and comparability of ESG ratings which do not always allow for an understanding of the nature and reasoning behind the assessments;
- Companies’ dissatisfaction with the workload of responding to questionnaires, the level of transparency of methodologies and performance expectations, the quality of the dialogue with analysts, the possibilities for reviewing draft reports, obtaining the results of analyses free of charge and the management of conflicts of interest;
Room for improvement in the information given by credit rating agencies on the integration of sustainability factors in their methodology.