More than 100 ESG rating firms seek EU authorisation

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Responsible Investor or enjoy below:

🗞️ Driving the news: More than 100 ESG rating providers have notified ESMA of their intention to seek EU authorisation, according to Responsible Investor
• The list includes disclosure platform CDP, which completed its acquisition by private equity firm Permira in June

🔭 The context: The ESG Rating Regulation (EU) 2024/3005 applied from 2 July 2026, making ESMA the sole direct supervisor of ESG rating providers operating in the EU, with no national competent authority tier
• Firms already active before that date had a transitional window to notify, then four months to apply for authorisation or recognition
• Providers with ESG rating turnover above €50 million face the full obligations immediately; smaller firms may use a lighter temporary regime

🌍 Why it matters for the planet: ESG ratings shape where capital flows, yet the sector has operated without common standards on methodology, data quality or conflicts of interest, allowing widely divergent scores for the same company
• Bringing over 100 providers under a single supervisor introduces transparency requirements to that layer, which determines whether an environmental score reflects measured performance or the provider's own weighting choices

⏭️ What's next: ESMA cannot issue formal decisions on applications made before 2 July; therefore, assessments are now proceeding under statutory timelines
• Notified providers remain temporarily listed on the Article 14 register and may continue operating until their applications are approved or refused

💬 One quote: The partnership with Permira "will chart a clear path for the future" — Sherry Madera, Chief Executive Officer, CDP, on the June 2026 restructuring

📈 One stat: Over 100 providers have notified ESMA; the €50 million turnover threshold separates full obligations from the small-provider regime

Subscribe to our free newsletters to never miss a beat in sustainability.

The world needs sustainability knowledge. At illuminem, no interest group or shareholder can influence our work. Thank you for supporting our mission to make high-quality and independent sustainability information free for all. Every contribution helps. Thank you for donating today