The Monetary Authority of Singapore is proposing an industry code of conduct with regard to environmental, social and governance ratings and data products.
The Monetary Authority of Singapore (MAS) has launched a public consultation on an industry code of conduct for providers of environmental, social, and governance (ESG) ratings and data products, according to a statement.
The proposal will establish «minimum industry standards of transparency in methodologies and data sources, governance, and management of conflicts of interest».
«MAS will monitor the implementation of the industry code and observe global developments before taking further steps to formalize a regulatory framework for ESG rating providers,» the regulator added.
Greater Confidence
According to MAS assistant managing director (capital markets) Lim Tuang Lee, the industry code will help create «greater confidence» for participants using ESG ratings and data products.
«The call for product providers to disclose how forward-looking elements such as an entity’s transition plans are considered in their products, is critical for more accurate market pricing signals related to climate risks and opportunities,» Lim said.
Interested parties can submit their comments on the public consultation by August 22.
