Changes between two versions
What changed between the plenary report and the adopted text
From · plenary report· 8 Dec 2023
on the proposal for a regulation of the European Parliament and of the Council on the transparency and integrity of Environmental, Social and Governance (ESG) rating activities
To · adopted text· 24 Apr 2024
Transparency and integrity of Environmental, Social and Governance (ESG) rating activities
These two texts have too little in common to compare paragraph by paragraph: they are different documents rather than versions of one (for example one group’s motion and the joint text that was adopted).
+8 added · −675 removed · 2 changed paragraphs, packaging included.
Part 12 of 13: Paragraphs 661–679
Removed:(5) any potential shortcomings of methodologies,
Removed:(6) policies for the revision of methodologies,
Removed:(6a) any changes to rating methodologies, models, key rating assumptions or data sources (including estimates), reasons for these changes and their implications on ratings,
Removed:(7) last date of the revision,
Removed:(7a) timing of data used for evaluation,
Removed:(7b) any errors in its ESG rating methodologies or in their application, including the measures taken once errors have been identified,
Removed:(7c) where the ESG rating includes KPIs covering the E factor, the extent to which the ESG rating is correlated with the percentage of taxonomy-alignment under Regulation (EU) 2020/852, together with an explanation of any significant deviations therefrom.
Removed:(b) a more granular overview of data processes, including:
Removed:(1) more detailed explanation of data sources used – including whether public or non-public, mentioning whether derived from the sustainability reporting standards developed pursuant to Article 29b of Directive 2013/34/EU /Taxonomy/SFDR],
Removed:(2) where applicable the use of proxies or industry average and explanation of the underlying methodology,
Removed:(3) the policies for updating data and revising historical data, date of last updates of data,
Removed:(4) data quality controls,
Removed:(5) any steps taken to address limitations in data sources, where applicable,
Removed:(5a) whether the data used has been subject to an assurance review;
Removed:(c) ▐information about engagement with rated entities including whether on-site reviews or inspections have been performed by the ESG rating provider and at what frequency;
Removed:(ca) a statement on the limitations of the ratings, including information about engagement with the various stakeholders of a rated entity and how contradictory, incomplete or subjective information is handled;
Removed:(d) where applicable, an explanation of any AI methodology used in the data collection or rating process;
Removed:(e) in case of a major new information on a rated entity that has the possibility to affect the result of an ESG rating, ESG rating providers shall inform how they have taken that information into account and whether they have amended the corresponding ESG rating.
Removed:The information referred to in Part 2 of this Annex shall be specific to each ESG rating distributed.