Research Report

Code of Conduct for ESG Ratings and Data Products Providers

Posted: 11 Dec 2023

Resource Type: Research Report


The City of London Corporation’s International Regulatory Strategy Group (IRSG), jointly with the International Capital Markets Association (ICMA), has published a new, globally consistent Code of Conduct for ESG Ratings and Data Products Providers. As demand for sustainable products continues to grow, firms increasingly rely on third party ESG data and ratings products. This industry-led Code has been created to increase transparency and trust in the market. The Code is grounded in IOSCO’s recommendations for ESG data and ratings, with a focus on promoting transparency, good governance, management of conflicts of interest, and robust systems and controls.

This was officially launched on 31 January by members and observers of the ESG data and ratings working group (DRWG) who came together at the London Stock Exchange to celebrate the release of the Code of Conduct for ESG Ratings and Data Products Providers. 

By basing the Code heavily on IOSCO’s recommendations, it is intended to be internationally interoperable, and it is hoped that it can represent an important step towards a globally consistent regulatory framework.

IOSCO welcomes this voluntary Code of Conduct and considers it an important building block to providing an international baseline which will improve transparency and trust for all market participants.

Tajinder Singh, IOSCO Deputy Secretary General 

Watch the market opening and panel discussion to hear from key decision makers and stakeholders on how the Code of Conduct can help enhance consistency, transparency, and accountability in the financial services industry.

In 2022, the FCA appointed the IRSG and ICMA to convene an industry group to develop a globally consistent voluntary Code. The FCA, HM Treasury (HMT) and other national and international financial regulators acted as observers. The working group brings together stakeholders such as ratings and data providers, asset managers, asset owners, banks, corporate rated entities, NGOs, academics and other organisations.

Helping economies worldwide tackle climate challenges

The Global City sustainable finance hub

The Global City sustainable finance hub

Stay in touch

Sign up to our mailing list to make sure you're the first to hear about news, reports, and events relating to financial and professional services from the City of London Corporation. 

Sign up now

Related content