ABSTRACT
The chapter presents and prepares current regulations related to ESG ratings, such as ESG rating regulations, IOSCO recommendations, Basel recommendations, and solvency regulations. Regulatory ideas have been presented in the United States, United Kingdom, Switzerland, Hong Kong, Indonesia, Singapore, Thailand, China, and others. The effectiveness of the aforementioned regulations and ideas has been analysed, considering the results and previous observations. There have been presented trends in regulations related to ESG ratings and their use by financial institutions. The analysis of the ESG regulations shows the main problems with their regulatory ineffectiveness. It argues that this lens most aptly reveals the three key weaknesses of the regulatory regime for ESG rating providers, that is, sub-optimal coverage of scope, over-inclusiveness in the application of regulatory standards, and under-inclusiveness where appropriate governance is not provided.
