Regulation on ESG rating providers

Regulation (EU) 2024/3005 on the transparency and integrity of Environmental, Social and Governance (ESG) rating activities (ESG Rating Regulation)

Regulating the ESG rating markets by regulating ESG rating providers operating in the EU.

Level 1

Entry into force

1 January 2025

New EU Regulation on ESG ratings published (18 December 2024)

2025

No specific timelines 

Scope

The ESAs, through the Joint Committee, to develop draft regulatory technical standards to specify the details of the presentation and content of the information to be disclosed pursuant to Article 2(2), first subparagraph, point (c), second subparagraph, taking into account the various types of financial products, their characteristics and the differences between them, and the need to avoid duplication of information already published in accordance with applicable regulatory requirements. 

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Update 6 October 2025: EU Commission included the regulatory technical standards in its list of non-essential Level 2 acts that it will not adopt before 1 October 2027.

2 October 2025

Level 2

Application for authorisation to operate in the EU

ESMA to develop draft regulatory technical standards to specify further the information listed in Annex I (Information to be provided in the application for authorisation).

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Update 15 October 2025: ESMA published its final report on technical standards under the ESG Rating Regulation containing, among others, the draft regulatory technical standards specifying the information contained in the application for authorisation and in the application for recognition of an ESG rating provider.

No specific timeline

Level 2

Equivalence regime

EU Commission may adopt an equivalence decision by means of an implementing act stating that the legal framework and supervisory practice of a third country ensure that:

  • ESG rating providers authorised or registered in that third country comply with binding requirements which are equivalent to the requirements of the Regulation;
  • Compliance with the binding requirements is subject to effective supervision and enforcement on an ongoing basis in that third country.

EU Commission may adopt a delegated act to specify these conditions.

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Update 6 October 2025: 

EU Commission included the delegated act in its list of non-essential Level 2 acts that it will not adopt before 1 October 2027.

2 October 2025

Level 2

Recognition of ESG rating providers established outside the EU

ESMA to develop draft regulatory technical standards to determine the form and content of the application for recognition referred to in Article 12(2) (Recognition of ESG rating providers established outside the EU), and, in particular, the presentation of the information required in Article 12(4).
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Update 15 October 2025: ESMA published its final report on technical standards under the ESG Rating Regulation containing, among others, the draft regulatory technical standards specifying the information contained in the application for authorisation and in the application for recognition of an ESG rating provider.

No specific timeline

Level 2

Register of ESG rating providers and accessibility of information on the European single access point

ESMA to develop draft implementing technical standards to specify:

  • any other metadata to accompany the information (i.e. the information referred to in Article 14(1) (Register of ESG rating providers and accessibility of information on the European single access point));
  • the structuring of data within the information;
  • the information for which a machine-readable format is required, and which machine-readable format is to be used.

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Update 6 October 2025: 

EU Commission included the implementing technical standards in its list of non-essential Level 2 acts that it will not adopt before 1 October 2027.

No specific timeline

Level 3

Register of ESG rating providers and accessibility of information on the European single access point

Where necessary, ESMA to adopt guidelines for entities to ensure that the metadata submitted in accordance with Article 14(8)(a), (i.e. any other metadata accompanying the information referred to in Article 14(1) (Register of ESG rating providers and accessibility of information on the European single access point)), are correct.

2 October 2025

Level 2

Separation of business and activities

ESMA to develop draft regulatory technical standards to specify the details of the measures and safeguards to be implemented pursuant to Article 16(2), (3) and (4) (Separation of business and activities).

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Update 15 October 2025: ESMA published its final report on technical standards under the ESG Rating Regulation containing, among others, the draft regulatory technical standards specifying the details of the measures and safeguards to be implemented by ESG rating providers in relation to the separation of business and activities.

2 October 2025

Level 2

Disclosure to the public of the methodologies, models and key rating assumptions used in ESG rating activities

ESMA to develop draft regulatory technical standards to specify further the elements to be disclosed in accordance with Article 23(1), first subparagraph (Disclosure to the public of the methodologies, models and key rating assumptions used in ESG rating activities). Those elements must not include any additional disclosure requirements other than those listed in Annex III (Disclosure requirements), point 1.

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Update 15 October 2025: ESMA published its final report on technical standards under the ESG Rating Regulation containing, among others, the draft regulatory technical standards specifying the elements to be disclosed to the public and to users of ESG ratings, rated items and issuers of rated items. 

ESMA may develop draft implementing technical standards to specify the data standards, formats and templates that ESG rating providers are to use to present the information referred to in Article 23(1).
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Update 6 October 2025: 

EU Commission included the implementing technical standards in its list of non-essential Level 2 acts that it will not adopt before 1 October 2027.

2 October 2025

Level 2

Disclosures to users of ESG ratings, rated items and issuers of rated items

ESMA to develop draft regulatory technical standards to specify further the elements that are to be disclosed in accordance with Article 24(1) (Disclosures to users of ESG ratings, rated items and issuers of rated items). Those elements must not include any additional disclosure requirements other than those listed in Annex III (Disclosure requirements), point 2.

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Update 15 October 2025: ESMA published its final report on technical standards under the ESG Rating Regulation containing, among others, the draft regulatory technical standards specifying the elements to be disclosed to the public and to users of ESG ratings, rated items and issuers of rated items. 

ESMA may develop draft implementing technical standards to specify the data standards, formats and templates that ESG rating providers are to use to present information referred to in Article 24(1).

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Update 6 October 2025: 
EU Commission included the implementing technical standards in its list of non-essential Level 2 acts that it will not adopt before 1 October 2027.

2 October 2025

Level 3

Supervision by ESMA – general principles

ESMA, in cooperation with EBA and EIOPA, to issue and update guidelines on the application of the endorsement regime referred to in Article 11 (Endorsement of ESG ratings provided by ESG rating providers established outside the EU).

No specific timeline

Level 2

Supervision by ESMA – procedural rules for taking supervisory measures and imposing fines

EU Commission to adopt delegated acts to supplement the Regulation by adopting further rules of procedure for the exercise of ESMA’s power to impose fines or periodic penalty payments, including provisions on rights of defence, temporal provisions and the collection of fines or periodic penalty payments, and by adopting detailed rules on the limitation periods for the imposition and enforcement of fines and periodic penalty payments.

Level 1

Entry into application

2 July 2026

2026

2 January 2026

Level 2

Supervisory fees

EU Commission to adopt delegated acts to supplement the Regulation by specifying the type of fees, the matters for which fees are due, the amount of the fees and the respective justification, the manner in which they are to be paid and, where applicable, the way in which ESMA is to reimburse the competent authorities in respect of any costs that they might incur when carrying out tasks pursuant to the Regulation, in particular as a result of any delegation of tasks as referred to in Article 43 (Delegation of tasks by ESMA to the competent authorities).

2 August 2026

Transitional provisions – small ESG rating providers

ESG rating providers which were operating in the EU at the date of entry into force of the Regulation (i.e. 1 January 2025) must notify ESMA if they wish to continue operating in the EU and apply for authorisation or recognition in accordance with Title II (Provision of ESG ratings in the EU).  

2 November 2026

Transitional provisions – existing ESG rating providers

ESG rating providers which were operating in the EU at the date of entry into force of the Regulation (i.e. 1 January 2025) must notify ESMA if they wish to continue operating in the EU and apply for authorisation or recognition in accordance with Title II (Provision of ESG ratings in the EU).

2029

2 January 2029

Milestone

Review

EU Commission to evaluate the application of the Regulation and report on the main findings of the evaluation to the EU Parliament and the Council of the EU. The report must in particular assess the following:

  • the impact of the Regulation on the transition to a sustainable economy, on the gap of investments needed to meet the EU climate targets as set out inRegulation (EU) 2021/1119, and on redirecting private capital flows towards sustainable investments;
  • the impact of the Regulation on the market structure, including the evolution of the number and diversity of ESG rating providers;
  • whether the scope of the Regulation is appropriate to achieve its objectives in accordance with Article 1 (Subject matter), including whether providers of data products on environmental, social and human rights, and governance factors should be included in the scope of the Regulation;
  • the adequacy of the requirements for ESG rating providers established outside the EU to operate in the EU;
  • the functioning of the market of ESG rating providers in the EU, including potential conflicts of interest, and its supervision by ESMA;
  • whether the Regulation, including the non-interference principle referred to in Article 28 (Non-interference with the content of ESG ratings or methodologies), has contributed to improving the quality and reliability of ESG ratings and reduced the use of misleading ESG ratings.