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Clarity AI Announces its Intention to Apply the ICMA and IRSG Code of Conduct for ESG Data and Rating Product Providers

Published: February 5, 2024
Modified: February 5, 2024

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The industry-led working group launched in December a voluntary code of conduct, building on IOSCO’s recommendations

The International Capital Market Association (ICMA) and the International Regulatory Strategy Group (IRSG) were appointed in 2022 by the UK Financial Conduct Authority (FCA) to convene an industry group to develop a Code of Conduct for ESG Ratings and Data Products Providers.

The code builds on IOSCO’s 2021 Recommendations for ESG Ratings and Data Products Providers, similar to what the Japanese Financial Services Agency (JFSA) did in late 2022. Clarity AI already announced its support for IOSCO recommendations as part of its JFSA endorsement.

As well as feeding into the consultation in July 2023, Clarity AI’s Chief Sustainability Officer, Lorenzo Saa, and Regulatory Lead, Tom Willman, attended the launch of this new Code of Conduct by the ICMA and the IRSG at the London Stock Exchange on  January 31st.

During the presentation, held minutes before the market open, representatives from IOSCO and ICMA emphasized the key requirements sustainability information must have for market participants to effectively use it in decision-making. Clarity, transparency, and good governance were some of the attributes mentioned, fully aligned with Clarity AI’s values and mission. This is why Clarity AI formally announced its intention to apply the code.

Clarity AI is closely monitoring the latest regulatory initiatives related to the regulation of ESG data and rating providers and is supportive of the general direction of these initiatives.

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