sustainAX signs up for the ICMA Code of Conduct for ESG Ratings and Data Product Providers
After thorough review we have taken the decision to sign up today 22 January 2024 for the ICMA Code of Conduct for ESG Ratings and Data Product Providers. ICMA is the International Capital Market Association.
About the ICMA Code of Conduct for ESG Ratings and Data Product Providers
“This Code of Conduct has been created by an industry-led working group and was launched on 14 December 2023. It is grounded in the recommendations published by the International Organization of Securities Commissions (IOSCO), with a focus on promoting transparency, good governance, management of conflicts of interest, and robust systems and controls. As such, it is intended to be internationally interoperable and could be used by jurisdictions where no local Code or regulation is in place.”
The principles:
1. Principle on Good Governance
2. Principle on Securing Quality
3. Principle on Conflicts of Interest
4. Principle on Transparency
5. Principle on Confidentiality
6. Principle on Engagement
EU regulation of ESG Rating Providers
The EU has started the process of regulation of the ESG Rating providers, but it will take some time before this is in force. We see that many aspects of the ICMA Code of Conduct for ESG Ratings and Data Product Providers are aligned with the content of the current proposal for EU regulation and we see that starting the process to align with the Code of Conduct will to a large extent prepare us for the upcoming regulation process with ESMA.
What do we at sustainAX have to do now?
At the latest on 22 July 2024, that is the end of the implementation period, we will publish a statement of how we have applied the Code (“Statement of Application”) on this website and notify ICMA about this.
In the period between now and then we will further develop our existing policy framework, processes and governance to ensure compliance with the Code of Conduct.
