8 Amendments of Pascal CANFIN related to 2023/0177(COD)
Amendment 135 #
Proposal for a regulation
Recital 21
Recital 21
(21) To ensure a higher-level transparency, ESG rating providers should disclose information to the public on the methodologies, models and key rating assumptions which those providers use in their ESG rating activities and in each of their ESG ratings product. In light of the uses of ESG ratings by investors, the rating products should explicitly disclose which dimension of the double materiality the rating addresses, whether it is both material financial risk to the rated entity and the material impact of the rated entity on the environment and society in general or whether it takes into account only one of them. They should also explicitly disclose whether the rating addresses other dimensions. For the same reason, ESG rating providers should provide more detailed information on the methodologies, models and key rating assumptions to subscribers of ESG ratings. That information should enable users of ESG ratings to perform their own due diligence when assessing whether to rely or not on those ESG ratings. In particular, ESG ratings providers should disclose whether E, S, or G factors are taken into account, or an aggregation thereof, the rating given to each relevant factor, and the weighting each of these factors is given in the aggregation. Disclosure of information concerning models should however not reveal sensitive business information or impede innovation.
Amendment 139 #
Proposal for a regulation
Recital 21 a (new)
Recital 21 a (new)
(21 a) This Regulation should not interfere with the ESG rating methodologies or content. Diversity in the methodologies of ESG ratings providers ensures that the broad requirements of users can be met and promotes competition in the market.
Amendment 335 #
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. ESG rating providers shall ensure that rating analysts, employees and any other natural person whose services are placed at its disposal or under its control and who are directly involved in the provision of ESG ratings, including analysts directly involved in the rating process and persons involved in the provision of scores, have the knowledge and experience that is necessary for the performance of the duties and tasks assigned, in particular a sufficient understanding of potential material financial risk to the rated entity and potential material impact of the rated entity on the environment and society in general.
Amendment 384 #
Proposal for a regulation
Article 21 – paragraph 3 a (new)
Article 21 – paragraph 3 a (new)
3 a. ESMA shall develop draft implementing technical standards to specify the data standards and formats for the elements that are to be disclosed in accordance with paragraph 1. ESMA shall submit those draft implementing technical standards to the Commission by XX XXXX XXXX.
Amendment 390 #
Proposal for a regulation
Article 22 – paragraph 3 a (new)
Article 22 – paragraph 3 a (new)
3 a. ESMA shall develop draft implementing technical standards to specify the data standards and formats for the elements that are to be disclosed in accordance with paragraph 1. ESMA shall submit those draft implementing technical standards to the Commission by XX XXXX XXXX.
Amendment 479 #
Proposal for a regulation
Annex III – Part 1 – paragraph 1 – point a
Annex III – Part 1 – paragraph 1 – point a
(a) high level overview of the rating methodologies used (and changes thereto), including: (i) whether analysis is backward- looking or forward-looking; and, (ii) whether the analysis looks at potential material financial risk to the rated entity, or potential material impact of the rated entity on the environment and society in general, or both, the weighting of the two factors, and the explanation of the weighting method, including weight per factor;
Amendment 492 #
Proposal for a regulation
Annex III – Part 1 – paragraph 1 – point f
Annex III – Part 1 – paragraph 1 – point f
(f) in the case of an aggregated ESG rating, the rating given to the individual E, S and G factors, the weighting of the three overarching ESG factors categories (e.g., 33% Environment, 33% Social, 33% Governance), and the explanation of the weighting method, including weight per individual E, S and G factors;
Amendment 493 #
Proposal for a regulation
Annex III – Part 1 – paragraph 1 – point g a (new)
Annex III – Part 1 – paragraph 1 – point g a (new)
(ga) an explanation about the extent to which the alignment with a 1.5°C or below 2°C pathway is integrated in the methodology and how it is weighted;