Skip to main content

ESG sector sees efforts at regulation and transparency

by Sangam Paudel, Dec 18
1 minute read

In an effort to tackle greenwashing, the International Organization of Securities Commissions (IOSCO) has set out a global framework to regulate the environment, social and governance (ESG) sector and bring more clarity on how the ratings are compiled.

bird's eye photo of mountain surrounded by trees

So what?

ESG is a rapidly growing sector, which has so far been largely unregulated and unstandardized. The rising demand for professional advisors in the ESG consulting sector as reported by the Big Four accounting firms (who recorded their strongest financial performance since the collapse of Enron) highlights the massive growth and financial gains of the sector.

The frameworks set out by IOSCO consist of recommendations for its members to apply in day-to-day work. These will likely be the starting point for other actors to introduce regulations and improve the transparency of the sector. Increased transparency measures in the ESG ratings sector could make ‘high quality’ ratings the norm and tackle the greenwashing that goes on through undisclosed ESG ratings criteria. How might the different stakeholders collaborate and support increased regulation in the ESG sector? Where might conflicts arise regarding implementation?

Sources

Details

by Sangam Paudel Spotted 89 signals

Have you spotted a signal of change?

Register to receive the latest from the Futures Centre.
Sign up

  • 0
  • Share

Join discussion

Related signals

Our use of cookies

We use necessary cookies to make our site work. We'd also like to set optional analytics cookies to help us improve it. We won't set optional cookies unless you enable them. Using this tool will set a cookie on your device to remember your preferences.

For more detailed information about the cookies we use, see our Cookies page.

Necessary cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytics cookies

We'd like to set Google Analytics cookies to help us to improve our website by collecting and reporting information on how you use it. The cookies collect information in a way that does not directly identify anyone. For more information on how these cookies work, please see our 'Cookies page'.

>