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1. ESG rating providers shall ensure the independence of their rating activities, including from all political and economic influences or constraints.

2. ESG rating providers shall have in place rules and procedures that ensure that their ESG ratings are issued, published and distributed in accordance with this Regulation.

3. ESG rating providers shall employ systems, resources and procedures that are adequate and effective to comply with their obligations under this Regulation.

4. ESG rating providers shall adopt and implement written policies and procedures that ensure that their ESG ratings are based on a thorough analysis of all information available to them that is relevant to their analysis in accordance with their rating methodologies.

5. ESG rating providers shall adopt and implement internal due diligence policies and procedures that ensure that their business interests do not impair the independence or accuracy of the ESG rating activities.

6. ESG rating providers shall adopt and implement sound administrative and accounting procedures, internal control mechanisms, and effective control and safeguard arrangements for information processing systems.

7. ESG rating providers shall use rating methodologies for the ESG ratings they provide that are rigorous, systematic, independent and capable of justification and shall apply those rating methodologies continuously and in a transparent manner.

8. ESG rating providers shall review the rating methodologies referred to in paragraph 7 on an ongoing basis and at least annually.

9. ESG rating providers shall monitor and evaluate the adequacy and effectiveness of the systems, resources and procedures referred to in paragraph 3 at least annually and take appropriate measures to address any deficiencies.

10. ESG rating providers shall establish and maintain a permanent, independent and effective oversight function to ensure oversight over all aspects of the provision of their ESG ratings. The oversight function shall have the necessary resources and expertise and have access to all information necessary to perform its duties. It shall have direct access to the management body of the ESG rating provider. ESG rating providers shall develop and maintain robust procedures regarding their oversight function.

11. ESG rating providers shall adopt all necessary measures to ensure that the information they use in issuing ESG ratings is of sufficient quality and from reliable sources. ESG rating providers shall clearly state that their ESG ratings are their own opinion.

12. ESG rating providers shall notify the rated item or the issuer of the rated item during its working hours and at least two full working days before the first issuance of the ESG rating in order to give the rated item or the issuer of the rated item an opportunity to inform the ESG rating providers of any factual errors. To that end, ESG rating providers shall make available, upon request by the rated item or by the issuer of the rated item, free of charge and on a non-commercial basis, the information referred to in point 1, points (b) and (c), and point 2, point (b)(ii), of Annex III, together with the date of the last update of data as well as, where relevant, any other data collected, estimated or computed that relates to the rated item or the issuer of a rated item.

13. ESG rating providers shall not be obliged to disclose information about their intellectual capital, intellectual property, know-how or the results of innovation that would qualify as trade secrets as defined in Article 2, point (1), of Directive (EU) 2016/943 of the European Parliament and of the Council .

14. ESG rating providers shall only make changes to their ESG ratings in accordance with their rating methodologies published pursuant to Article 23.