Pension Funds Want ESG Ratings ‘Oligopoly’ Broken by EU
Europe’s pensions industry wants regulators to end the dominance of some ESG ratings firms, amid concerns that the existing market dynamic is hurting competition and driving up prices.
The absence to date of regulatory controls has enabled the “dominance of major players,” which has “negatively impacted smaller entities,” PensionsEurope said in a hearing response to the European Commission. That’s “led to higher prices, barriers to entry, reduced market competition and limited innovation,” it said.
The EU’s executive arm proposed a major crackdown of the ESG ratings industry earlier this year, including requiring more transparency across score providers and adding …
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