On 29 January 2021, the European Securities and Markets Authority (ESMA) published a letter it had sent to the European Commission setting out its views on the main challenges in the area of environmental, social and governance (ESG) ratings and assessment tools. The letter builds on ESMA’s response to the Commission consultation on the renewed sustainable finance strategy in July 2020 and identifies, among other things, that there should be a common definition of ESG ratings that covers the broad spectrum of possible ESG assessments currently on offer.