MAS issues consultation paper on Proposed Code of Conduct for ESG Rating and Data Product Providers

28 July 2023

On 28 June 2023, the Monetary Authority of Singapore (“MAS”) issued a consultation paper on a “Proposed Code of Conduct for Environmental, Social and Governance (“ESG”) Rating and Data Product Providers”. The consultation closes on 22 August 2023.

The consultation paper sets out proposals to elevate standards and disclosures of ESG ratings and data products in Singapore via a phased and proportionate regulatory approach, starting with a voluntary industry code of conduct for the providers. The industry code will cover best practices on governance, management of conflicts of interest, and transparency of methodologies and data sources, including disclosure on how forward-looking elements are taken into account in the products. The intent is to enable users to better consider transition risks and opportunities when making decisions on capital allocation.

Reference materials

The following materials are available on the relevant webpage of the MAS website www.mas.gov.sg:

• Consultation Paper on “Proposed Code of Conduct for Environmental, Social and Governance Rating and Data Product Providers”
• Annex I: Draft Code of Conduct for ESG Rating and Data Product Providers
• Annex II: Self Attestation Checklist for ESG Rating and Data Product Providers