South Africa: The Financial Sector Conduct Authority (FSCA) has published a discussion paper on ESG Rating Services and Data Providers as part of its Sustainable Finance programme of work.
The PRI welcomes the FSCA’s proposed approach to considering a regulatory framework for ESG ratings services and ESG data providers in South Africa. Over the past few years, the growth of responsibleinvestment practices has led to a significant increase in demand for ESG information. Many investors rely oncorporate reporting, complemented by ESG ratings and data products, to assess portfolio risks andopportunities, support stewardship activities, and inform investment decision-making.
We generally support the FSCA’s direction of travel and welcome the FSCA’s focus on transparencyrequirements, governance standards, conflicts of interest management, proportionality, and alignment withinternational best practice. A well-calibrated framework can strengthen investor confidence while supportingthe continued development of South Africa’s sustainable finance market.
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