Regulation on how environmental, social and governance factors are reflected in the benchmark methodology

This regulation sets the minimum standards for how financial benchmarks must explain the inclusion of environmental, social, and governance (ESG) factors in their methodologies. It aims to increase transparency and prevent 'greenwashing' by ensuring that benchmarks claiming to be sustainable provide clear, factual evidence of how these factors are actually integrated.

This affects benchmark administrators and financial institutions. It ensures that investors and consumers have reliable information to make sustainable investment decisions based on standardized reporting.