On 21 April 2026, the European Commission adopted a draft Commission Delegated Regulation supplementing Regulation 2024/3005 (ESG rating Regulation) with regard to regulatory technical standards specifying the measures and safeguards to be implemented by ESG rating providers to separate their ESG rating activities from their other activities.
The structure of the draft Commission Delegated Regulation is as follows:
- Article 1 sets out that all ESG rating providers should put in place separate organisational structures and working environments for employees and other persons involved in the rating process from any of the activities listed in Article 16(1) of the ESG rating Regulation, and subject them to regular self-declarations attesting employees’ non-involvement in such activities.
- Article 2 proposes that ESG rating providers intending to provide investment services and/or insurance and reinsurance activities implement additional technical and internal control measures.
- Article 3 provides that, ESG rating providers that intend to provide benchmarks, or do provide such benchmarks, are to adopt additional specific safeguards ensuring that employee compensation remains unaffected by conflicts of interest related to benchmark activities, that ESG ratings are produced and offered independently of the provision of benchmarks, and that any actual or potential conflicts of interest are assessed and documented before entering into a contract for the provision of ESG rating activities.
The draft Commission Delegated Regulation enters into force on the twentieth day following its publication in the Official Journal of the European Union. It applies from 2 July 2026.