ESMA statement on publication and distribution of ESG ratings during transition period

The European Securities and Markets Authority (ESMA) has issued a statement clarifying the application of transitional arrangements under the new EU authorisation regime under Regulation 2024/3005 for environmental, social and governance (ESG) rating providers. ESMA's statement seeks to clarify whether third parties publishing or distributing the ESG ratings of existing, but still unauthorised providers, may continue doing so during the period from 2 July to authorisation, so as to avoid disruption during the transition to the new regime.

To this end, ESMA confirms that:

• ESG rating providers other than small providers wishing to continue operating in the EU after 2 July must notify ESMA by 2 August of their intention to apply for authorisation or recognition and shall submit their application for authorisation or recognition by 2 November at the latest.
• Small ESG rating providers wishing to continue operating in the EU must notify ESMA by 2 November of their intention to benefit from the temporary regime for such providers.
• From 2 July, third parties may continue publishing or distributing the ESG ratings of such providers until ESMA has adopted a decision to grant or refuse the application for authorisation or recognition, or to register the notifier as a small ESG rating provider, as relevant. ESMA will publish and update at regular intervals a list of entities that have notified it of their intention to continue operating in the EU after that date.
• After 2 November, third parties cannot publish or distribute the ESG ratings of an ESG rating provider, unless that provider: (i) has submitted an application for authorisation or recognition, or has submitted a notification for registration under the temporary regime for small ESG rating providers; and (ii) is listed in the Article 14 register that will become available on the ESMA website.

This means that after 2 November, third parties publishing or distributing the ESG ratings should consult this register to determine the identities of the ESG rating providers from which they will be able to continue to publish or distribute ESG ratings.

Return to main website.