The Monetary Authority of Singapore establishes industry standards for transparency in ESG rating and data products through a finalized Code of Conduct

Singapore, 6 Dec 2023 – The Monetary Authority of Singapore (MAS) has officially released its Code of Conduct for Environmental, Social, and Governance (“ESG”) Rating and Data Product Providers, commonly known as the CoC. The announcement comes after a thorough public consultation conducted from June to August 2023. The CoC is accompanied by a Checklist, allowing providers to self-attest their compliance with the code.

The primary objective of the CoC is to set baseline industry standards, focusing on transparency in methodologies and data sources, governance, and the management of conflicts of interest. These standards aim to safeguard the reliability and independence of ESG products. The Code builds upon recommendations from the International Organisation of Securities Commissions (“IOSCO”). Respondents to the consultation have overwhelmingly supported the CoC, emphasizing its importance in fostering trust within the industry. Users also advocate for third-party assurance or audit of providers’ self-attestation on the Checklist, where feasible.

MAS encourages providers to publicly disclose their adoption of the CoC and share their completed Checklist within 12 months from the publication date. To facilitate easy identification of compliant providers, MAS has collaborated with the International Capital Market Association (“ICMA”) to host a list of such providers on ICMA’s website.

The regulatory authority commits to monitoring industry developments and global regulatory landscapes for potential enhancements to the regulatory regime governing ESG rating and data product providers. Mr. Lim Tuang Lee, Assistant Managing Director (Capital Markets) at MAS, expressed confidence that the CoC will instill market confidence in the use of ESG rating and data products. He highlighted the baseline transparency standards as crucial for improving the comparability of ratings and data products. The Code encourages disclosures on how forward-looking elements are considered, enhancing investors’ assessments of investee entities’ responses to transition risks and opportunities.

MAS invites ESG rating and data product providers to adopt the Code of Conduct at their earliest readiness, emphasizing its positive impact on informed decision-making by investors interested in funding the climate transition.

In related news, the International Capital Market Association (“ICMA”), a global not-for-profit membership association, will host the list of providers adopting the CoC on its website. ICMA aims to promote well-functioning cross-border capital markets and supports financial regulation in collaboration with regulatory authorities.

For further details on the Code of Conduct and the Checklist, as well as MAS’ response to the public consultation please refer to the to the documents at the following links:



Source – MAS