On 4 April 2022, the European Commission issued a targeted consultation on the functioning of environmental, social and governance (ESG) ratings and sustainability factors in credit ratings.

The purpose of the consultation is to help the Commission gain a better insight on the functioning of the market for ESG ratings, as well as better understand how credit rating agencies incorporate ESG risks in their creditworthiness assessment. The consultation will directly feed into an impact assessment that the Commission will prepare this year in order to assess in detail the impacts, costs and options of a possible EU intervention.

The deadline for comments on the consultation is 6 June 2022.