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Recital 26

Recital 26

(26)It is important to lay down rules ensuring that ESG ratings provided by ESG rating providers authorised in the Union are of adequate quality, are subject to appropriate requirements that recognise the existence of different business models, and ensure market integrity. Those rules would apply to overall ESG ratings capturing environmental, social and governance factors, and to ratings that only assess a single environmental, social or governance factor or a sub-component of such a factor. Separate environmental (E), social (S) and governance (G) ratings should be provided rather than a single ESG rating that aggregates E, S and G factors. If ESG rating providers decide to provide aggregated ratings, they should disclose the rate and weight granted to each E, S and G category and present that information in a manner that ensures that each of those categories can be compared with the others.

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