ESMA Looks to Define How Global ESG Ratings Are Brought Into the EU Rulebook

Key Takeaways

• Consultation Focus: The European Securities and Markets Authority is seeking feedback on draft guidelines governing the endorsement of non-EU ESG ratings under the ESG Ratings Regulation.
• Endorsement Process: The proposals outline how EU-based ESG rating providers can adopt ratings produced outside the EU within the regulatory framework.
• Application Requirements: ESMA aims to clarify what information firms must submit when applying to endorse external ESG ratings, supporting consistent implementation.
• Regulatory Objective: The guidelines are intended to ensure the endorsement regime aligns with market integrity and investor protection goals.

Deep Dive

The European Securities and Markets Authority is shaping how environmental, social and governance ratings are used across borders, launching a public consultation on draft guidelines tied to the ESG Ratings Regulation. At issue is how ESG ratings developed outside the European Union can be brought into the EU system in a way that meets regulatory expectations.

ESMA’s consultation centers on the “endorsement” process, which allows EU-based ESG rating providers to use ratings produced in non-EU jurisdictions. While the framework for doing so is set out in the regulation itself, the regulator is now working to define how that process should function in practice.

The draft guidelines lay out ESMA’s proposed approach and, importantly, the information firms would need to submit when applying to endorse external ratings. The goal is to ensure that the endorsement regime is applied consistently, while giving providers a clear understanding of what is required of them.

The move reflects the broader ambition of the ESG Ratings Regulation, which establishes a formal structure for ESG rating providers operating in the EU. As part of that framework, the endorsement provisions are designed to balance access to global ESG data with safeguards around market integrity and investor protection.

By opening the guidelines to public consultation, ESMA is seeking feedback from ESG rating providers and other stakeholders to test whether the proposals are workable in practice. The regulator has emphasized that it wants the final guidance to be clear and proportionate, while remaining aligned with the regulation’s objectives.

The consultation will run until May 29, 2026. ESMA said it will review the responses before finalizing the guidelines, with further communication on the outcome and any adoption expected before the end of July.

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