Do the Old Rules Apply to ESG Ratings and Benchmarks?

The steady growth of sustainable finance in recent years poses difficult questions on how regulators should approach it. In the European Union (EU), for example, there has been an explosion of new rules aimed at addressing a broad array of concerns about investors’ reliance on the quality of sustainable financial products. In a new paper, we explore one aspect of those products, namely ESG ratings and benchmarks offered by information intermediaries. We address a simple research question: How much should the law on sustainable finance mirror traditional financial law? We also develop two sub-questions: (i) how “new” is sustainable … Read more