The European Securities and Markets Authority (ESMA) has launched a public consultation on draft guidelines regarding the endorsement of ESG ratings from outside the European Union. The move is a key step in implementing the new ESG Ratings Regulation, aimed at ensuring market integrity and protecting investors across the bloc.
The consultation paper outlines ESMA’s proposed approach for EU-based providers wishing to endorse ratings produced by third-country entities. By establishing a clear regulatory framework, ESMA seeks to harmonise the information required during the application process and ensure that non-EU ratings meet the same rigorous standards as those established within the Union.
The regulator is inviting feedback from ESG rating providers and broader industry stakeholders to ensure the guidelines are “clear, proportionate, and workable in practice.”
The ESG Ratings Regulation was introduced to bring transparency and accountability to a sector that has become vital for sustainable investment decisions. Under the current provisions, EU-established providers can only endorse third-country ratings if they comply with specific requirements set out in the regulatory framework.
The draft guidelines are designed to support the consistent application of these rules, preventing regulatory arbitrage and providing a level playing field for both domestic and international providers.
Stakeholders have until 29 May 2026 to submit their comments on the proposal. ESMA will then review the feedback to finalise the text, with a formal decision and adoption of the guidelines expected to be communicated before the end of July 2026.
The final guidelines will form a critical part of the EU’s growing sustainable finance infrastructure, providing the legal clarity needed for global firms to continue operating within the European market while adhering to its sustainability objectives.
