Regulators Train Sights on ESG Scores Amid Sustainability Boom – Bloomberg Law

Financial regulators are paying increasing attention to ESG scores that rate companies’ environmental and social policies, but that have in some cases been derided as misleading, and even vehicles for greenwashing.

The International Organization of Securities Commissions, which represents more than 100 national regulators including the U.S. Securities and Exchange Commission, is calling for oversight of ESG ratings and data product providers. IOSCO’s board, which noted in a report on Tuesday that providers of ESG ratings typically aren’t regulated, pointed to growing risks to “investor protections, the transparency and efficiency of markets, risk pricing and capital allocation.”

“The …