Global care dog with guidelines for green cleaning to deal with ESG grades Business and Economy News

A securities supervisor intends to publish the first regulatory guidelines for companies that value corporate environmental, social and governance (ESG) performance.

A securities watchdog plans to publish its first regulatory guidelines in July for environmental, social and governance (ESG) performance assessors to ensure that asset managers are not overly concerned with green concerns.

Concerns about so-called green cleaning have increased as more investment is channeled into climate-friendly funds, creating a rising market to assess how different companies are tackling ESG challenges.

Ashley Alder, president of IOSCO, which brings together regulatory values ​​from the United States, Europe and Asia, says many countries do not have rules for ESG evaluators.

“Many buy and sell parties have made it very clear how confusing the different ESG scoring options can be, again raising important questions about their importance, reliability and green cleaning,” Alder said at City & Financial’s City Week event on Wednesday.

“We are now working on ways to ensure better transparency and clearer definitions. It is likely that our services will provide guidance to service providers and rating agencies, along with making recommendations to regulators, as well as how to deal with potential conflicts of interest. ”

IOSCO – the International Organization of Securities Commissions – expects to publish a report in mid-July.

Watchdogs want asset managers to incorporate more meaningful climate-related considerations into risk management, as investing companies have stricter ESG disclosure rules.

“It’s very important to provide quality information to the latest investors,” Alder said.

IOSCO is working with the International Financial Reporting Foundation (IFRS) to create a new organization in November to draft the mandatory general rules for publicizing companies on climate change.

IOSCO members, such as the United States and the European Union, would continue to work on their outreach rules, creating some differences, Alder said.

It is essential, therefore, that these domestic approaches be fully interoperable with the developing global framework that IFRS is developing to prevent conflict and create more “noise” in the system, Alder added.

“We can’t just work in jurisdictional silos when climate emergencies don’t respect national borders,” he said. “Global investors need global comparability.”