The UK government plans to introduce a law in 2023 to regulate Environmental, Social, and Governance (ESG) raters. The move aims to enhance transparency in ESG ratings, which currently operate under a voluntary code of conduct. The proposed legislation is part of Finance Minister Rachel Reeves’ strategy to position Britain as a global leader in sustainable finance. The law will be in line with the International Organisation for Securities Commissions’ recommendations on ESG ratings. This initiative is expected to bring more clarity and consistency to the ESG ratings, thereby helping investors make informed decisions.

Source: Reuters