The Securities and Futures Commission (SFC) has expressed its endorsement of an industry-led public consultation on a voluntary code of conduct for providers of environmental, social, and governance (ESG) ratings and data products. The consultation aims to enhance the transparency, independence, and quality of ESG ratings and data products.
SFC’s Support for the Industry-Led Initiative
The SFC believes that the initiative is a positive step towards standardising ESG ratings and data products, which are becoming increasingly important in investment decision-making processes. The code of conduct would serve to guide the ESG ratings and data products providers on best practices, thus ensuring that they deliver reliable, consistent, and high-quality services.
Importance of ESG Ratings and Data Products
ESG ratings and data products play a critical role in informing investment strategies that are aligned with sustainable development goals. They provide investors with insightful data on a company’s environmental, social, and governance performance, enabling them to make informed decisions that contribute to sustainable development. Therefore, it is vital to ensure the integrity and quality of these products.
The Public Consultation
The public consultation will be a platform for ESG ratings and data products providers, as well as other stakeholders, to share their views on the proposed code of conduct. It will be an opportunity to discuss the standards that the ESG ratings and data products should meet, and the best ways to ensure adherence to these standards. The feedback received will be instrumental in shaping the final code of conduct.
Conclusion
The SFC’s support for the public consultation is a testament to its commitment to promoting sustainability in the financial sector. By endorsing the industry-led initiative, the SFC is fostering a conducive environment for sustainable investment, ultimately contributing to the global efforts towards achieving sustainable development goals.
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