EU ESG Benchmark Label

What? DG FISMA has commissioned a study on a potential EU ESG Benchmark Label. As part of this study, a survey is being carried out to assess the existing ESG benchmarks-related market and explore the feasibility and different aspects of an EU label.

When? 3 March 2022 – 31 March 2022

Why? The comparability and reliability of existing environmental, social and governance (ESG) benchmarks is hampered by the fact that they tend to use different methodologies, and have different objectives and levels of ambition. Building on the success of the ‘EU Paris-aligned’ and ‘EU Climate transition’ benchmarks labels, the Commission is exploring the possibility of introducing a new label that encompasses environmental, social and governance aspects simultaneously. The objective of such an EU ESG benchmark label would be to bring more clarity to the market, meet the demand of asset managers and investors, channel capital flows towards more sustainable investments, and further help tackle ESG-washing. The study should provide insight on the existing market for ESG benchmarks, and on the practicalities of the potential new label (feasibility, minimum standards, and transparency requirements).  

Want to know more? Read more about EU labels for benchmarks and take part in the survey