Background & Purpose
To ensure that sustainability ratings are reliable and transparent, the EU has introduced new rules that Sweden is now incorporating into national law.
The Decision
The Swedish parliament decided that companies providing professional sustainability ratings must be licensed, with the Swedish Financial Supervisory Authority acting as the new regulator.
Does this affect you?
- Sustainability rating agencies: These companies must now obtain an official license to continue their business operations in Sweden.
- Financial market investors: Investors will benefit from more reliable and regulated information when making decisions based on sustainability ratings.
In Practice
- Companies that rate how well businesses handle environment, social responsibility, and corporate governance must apply for a license.
- The Swedish Financial Supervisory Authority will monitor these companies to ensure they follow the rules.
- The new regulations will help prevent misleading sustainability information in the financial market.
