ESMA publishes final report on technical standards on transparency and integrity of ESG rating activities

The European Securities and Markets Authority (ESMA) has published its final report on three draft regulatory technical standards (RTS) under Regulation (EU) 2024/3005 on the transparency and integrity of environmental, social and governance (ESG) rating activities. ESMA revised the three RTS to take into account comments received from its May consultation. ESMA has also been mindful of the wider initiative for simplification and burden reduction. As a result, the revisions to the finalised RTS are aimed at removing or clarifying elements which could be considered unduly onerous or ambiguous.

Key changes include on the following:

• RTS on authorisation and recognition – ESMA has removed or simplified several information requirements.
• RTS on separation of business – The requirement for a physical separation of staff remains. However other requirements, such as those relating to network segmentation, have been clarified or removed where they were deemed as imposing excessive burden.
• RTS on disclosures – Several elements have been revised to ensure they are practically achievable by ESG rating providers – Others have been removed when it was judged they did not provide sufficient added value for the burden that was imposed.

ESMA has submitted the finalised draft RTS to the European Commission for adoption. They will also be subject to non-objection by the European Parliament and Council of the EU. They are expected to apply from 2 July 2026.

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