The Call for Evidence is one of a number of measures the EU is taking as it aims to strengthen the reliability of ESG ratings.
By Paul A. Davies, Sarah E. Fortt, Betty M. Huber, Michael D. Green, and James Bee
On 4 April 2022, the European Commission (Commission) published a call for evidence (Call for Evidence) to solicit responses to inform the Commission on the dynamics of the ESG ratings market in Europe, including on the use and objectives of ESG ratings and the interplay between larger and smaller market players.
Given the growing interest in ESG issues from investors in recent years, ESG ratings and similar products have become increasingly popular as an independent and easy-to-use data point for investors to compare companies’ ESG credentials. However, this popularity has led to concern from some market participants and regulators as to the currently unregulated nature of the ESG rating provider market. This unregulated nature has in turn led to concerns regarding the consistency and quality of ESG ratings, as well as the ability to compare ESG ratings from different providers who often use materially different methodologies.
The European Securities and Markets Authority (ESMA) is 
On 25 January 2022, the Securities and Exchange Board of India (SEBI) released a consultation paper stating that it planned to regulate what it described as “ESG risk ratings” and “ESG impact ratings”, alongside similar products such as carbon risk ratings, environmental, social, and governance (ESG) disclosure ratings, corporate transaction risk scores, and others.