ICMA publishes new paper on the role of ESG ratings and data products in sustainable finance
12 March 2026 ICMA’s new paper examines the evolving role of ESG ratings, scores and data products across capital markets, and the growing scrutiny around how these products are produced, interpreted and used. It looks at the practical role they play for institutional investors and other market participants, to what extent early regulatory concerns have been answered by voluntary codes of conduct, what else regulation can offer, and what points might need further reflection.
Drawing on ICMA research, including a survey of asset owners and asset managers representing around USD28 trillion in assets under management, the paper explores how ESG ratings and data products are used in practice across equity, debt and loan markets, from investment mandates and risk analysis through to engagement and regulatory compliance.
The paper looks at how IOSCO’s recommendations made in 2021 have led to market-led responses in Japan, Singapore, the UK and Hong Kong, including the creation of the ICMA Code of Conduct for ESG Ratings and Data Product Providers as well as more recently to regulation in the EU as well as India and the UK.
Key insights:
- The market has already become much more transparent since IOSCO’s Final Report in November 2021, helped by providers signing up to voluntary codes of conduct.
- There continues to be widespread reliance on third-party ESG ratings and data products, but also extensive use of internal ESG scores and ratings by asset managers and owners.
- The ICMA Code of Conduct has become an important reference point in improving transparency, governance and comparability in the market for ESG ratings and data products, however, regulation if done proportionately can bring additional benefits.
- The interaction between voluntary codes, formal regulation, internal models and standardised sustainability disclosures will shape how this market develops from here.
- ESG products not covered by current or future regulation, such as ESG data products, can continue to be covered by voluntary codes of conduct.
For members following developments in sustainable finance, regulation and market infrastructure, the paper offers a timely overview of a market that is becoming increasingly significant to investment decision-making and capital market practice.
