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1. Minimum disclosures to the public In accordance with Article 23 of this Regulation, ESG rating providers shall, at a minimum, disclose to the public on their website and through the European single access point (ESAP) the following:

(a) an overview of the rating methodologies used and changes thereto, including whether analysis is backward-looking or forward-looking and the time horizon covered;

(b) the industry classification used;

(c) an overview of data sources, including whether data is sourced from sustainability statements required under Directive 2013/34/EU or from information disclosed under Regulation (EU) 2019/2088 and whether sources are public or non-public, and an overview of data processes, estimation of input data in case of unavailability and frequency of data updates;

(d) the ownership structure of the ESG rating provider;

(e) information on whether and how the rating methodologies are based on scientific evidence;

(f) information on the ESG rating’s clearly defined objective and marking whether the rating is assessing risks, impacts, or both, according to the double materiality principle, or any other dimensions, and in the case of double materiality the proportion of the risk and impact materiality;

(g) the ESG rating’s scope, namely, whether it covers an individual E, S, or G factor or whether it is an aggregated rating aggregating E, S and G factors, or whether it covers specific issues such as transition risks;

(h) in the case of an aggregated ESG rating, the weighting of the three overarching E, S and G categories of factors (for example 33 % for the E factor, 33 % for the S factor, 33 % for the G factor), and the explanation of the weighting method, including weight per individual E, S and G category;

(i) within the E, S or G factors, specification of the topics covered by the ESG rating, and whether they correspond to the topics from the sustainability reporting standards developed pursuant to Article 29b of Directive 2013/34/EU;

(j) information on whether the rating is expressed in absolute or relative value;

(k) where applicable, reference to the use of artificial intelligence in the data collection or rating process including information about current limitations and risks of using artificial intelligence;

(l) general information on criteria used for establishing fees charged to clients, specifying the various elements taken into consideration, and general information on the business/payment model;

(m) any limitation in data sources and methodologies used for the construction of ESG ratings;

(n) the main risks of conflicts of interest and the steps taken to mitigate them;

(o) if an ESG rating of a rated item covers the E factor, information on whether that rating takes into account the targets and objectives of the Paris Agreement or any other relevant international agreements;

(p) if an ESG rating of a rated item covers the S and G factors, information on whether that rating takes into account any relevant international agreements;

(q) any limitation on the information available to ESG rating providers.

2. Additional disclosures to users of ESG ratings and rated items within the scope of Directive 2013/34/EU

In accordance with Article 24 and in addition to the minimum disclosures to the public referred to in point 1 of this Annex, ESG rating providers shall make available the following information to users of ESG ratings, rated items and issuers of a rated item, if applicable, that are the subject of such rating:

(a) a more granular overview of the rating methodologies used and changes thereto, including:

(i) where applicable, scientific evidence and assumptions on which the ratings are based;

(ii) the relevant key performance indicators per E, S and G factor, and weighting method;

(iii) in the case of an aggregated ESG rating, the result of the assessment for each E, S and G category of factors, presented in a manner that ensures comparability of the E, S and G category;

(iv) any potential shortcomings of methodologies, and the measures taken to address those shortcomings;

(v) policies for the revision of methodologies;

(vi) when an ESG rating has been upgraded or downgraded due to any material changes to rating methodologies, models, key rating assumptions or data sources (including estimates), the reasons for those changes and their implications for the given rating;

(vii) date of the last revision of methodologies; (viii) where the ESG rating covers the E factor, whether and to what extent the ESG rating is correlated with the percentage of taxonomy-alignment under Regulation (EU) 2020/852, or aligned with other international agreements, together with an explanation of any significant deviations therefrom;

(b) a more granular overview of data processes, including:

(i) a more detailed explanation of data sources used, including whether public or non-public, whether subject to assurance engagement, and whether derived from the sustainability reporting standards developed pursuant to Articles 19a and 29b of Directive 2013/34/EU concerning sustainable economic activities and disclosure of information pursuant to Regulation (EU) 2020/852 and Regulation (EU) 2019/2088, including whether and how information on companies’ transition plans derived from such sustainability reporting standards is used;

(ii) where applicable, the use of estimation and industry average and explanation of the underlying methodology;

(iii) the policies for updating data and revising historical data, and the date of last updates of data;

(iv) data quality controls, their frequency and the remediation process if issues arise;

(v) where applicable, any steps taken to address limitations in data sources;

(c) where applicable, information about engagement with rated items and issuers of rated items, including whether on-site reviews or visits have been performed by the ESG rating provider and at what frequency;

(d) where an ESG rating provider issues an unsolicited rating, a prominent statement to that effect in the ESG rating, including information on whether the rated item or a related third party has been informed that it would be rated, whether it participated in the rating process and whether the ESG rating provider had access to the management and relevant internal documents of the rated item or a related third party;

(e) where applicable, an explanation of any artificial intelligence methodology used in the data collection or rating process;

(f) in the case of major new information in respect of a rated item that has the possibility to affect the result of an ESG rating, ESG rating providers shall explain how they have taken that information into account and whether they have amended the corresponding ESG rating; Where applicable, the information referred to in point 2 of this Annex shall be specific to each ESG rating distributed.