MAS releases Code of Conduct to boost transparency in ESG Rating and Data Products

2 months ago 55

SINGAPORE: On Wednesday, Dec 6, the Monetary Authority of Singapore (MAS) unveiled its finalised Code of Conduct to boost transparency in ESG Rating and Data Products, along with a self-attestation Checklist. The release comes after a public consultation held from Jun to Aug 2023.

MAS commits to monitoring ongoing industry developments and global regulatory changes, remaining open to further regulatory enhancements for ESG rating and data product providers. The Code of Conduct represents a crucial step towards building market confidence in utilising ESG rating and data products. By establishing transparent standards for rating methodologies and data sources, the CoC enhances the comparability of ratings and data products, fostering more informed decision-making for investors keen on contributing to the climate transition.

Mr Lim Tuang Lee, Assistant Managing Director (Capital Markets) at MAS, expressed optimism about the Code’s impact. He stated, “The Code of Conduct will help build market confidence in the use of ESG rating and data products. Its baseline transparency standards for rating methodologies and data sources will improve the comparability of ratings and data products. The Code also encourages disclosures on how forward-looking elements are considered in such products, which will improve investors’ assessments of investee entities’ responses to transition risks and opportunities. Overall, the Code will support informed decision making by investors keen on funding the climate transition. We welcome adoption by ESG rating and data produc...

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