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ESG should face ‘greater attention’ from regulators, says securities watchdog

The IOSCO advice comes amid regulatory probes into asset manager DWS for marketing sustainable investments

A palm oil plantation at the edge of peat land swamp rainforest. The IOSCO is calling for more regulatory scrutiny of companies to help increase trust in ESG ratings and data
A palm oil plantation at the edge of peat land swamp rainforest. The IOSCO is calling for more regulatory scrutiny of companies to help increase trust in ESG ratings and data Photo: Getty Images

IOSCO has published recommendations to combat growing scepticism that ESG claims could be tantamount to greenwashing amid a market lacking in transparent methodologies.

The Board of the International Organisation of Securities Commissions (IOSCO) said in a 23 November statement that its recommendations are aimed at improving trust in ESG ratings. Among their advice: More regulatory scrutiny.

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