Green finance: ESG conduct code for ratings and data providers up for industry discussion, aims to raise transparency
- Code will be ‘vital in fostering greater transparency, quality and reliability of ESG information, as well as comparability of products’, SFC head says
- Code, drafted in line with global practices, will allow SFC-licensed intermediaries and other end users to compare the conduct of ESG providers
The draft standards aim to foster the green finance market’s development by allowing SFC-licensed intermediaries and other end users to compare the conduct of ESG providers.
The code of conduct includes a self-attestation document that provides information on the providers’ adherence to the code in a structured format, according to the SFC.
“The code, together with the self-attestation document, will be vital in fostering greater transparency, quality and reliability of ESG information, as well as comparability of products,” said SFC CEO Julia Leung Fung-yee.
The code of conduct will have four key elements: transparency, governance, systems of control, and management of conflicts of interest, according to the draft published on the website of the International Capital Market Association (ICMA), which leads the industry working group as the secretariat.
