Agents for Impact Takes Next Step Under New EU ESG Rating Rules

Our member Agents for Impact (AfI) has notified the European Securities and Markets Authority (ESMA) of its intention to operate AFISAR© under the temporary regime for small ESG rating providers, established by Regulation (EU) 2024/3005. AfI is now included in ESMA’s public list of firms that have notified the authority under the new Regulation.

What is AFISAR©?

AFISAR© is AfI’s sustainability rating for microfinance institutions, banks and MSME lenders. It is designed to assess and communicate how well financial institutions are aligned with sustainability goals, giving investors, funders and other stakeholders a clearer picture of an institution’s performance beyond financial results.

Why it matters

The new EU framework for ESG ratings places greater emphasis on transparency, sound governance, the management of conflicts of interest and the integrity of rating activities. AfI sees this as a positive development for the market and an opportunity to further strengthen the framework behind AFISAR©.

As AfI points out, for stakeholders who use ESG ratings to inform investment and sustainability decisions, transparency in how a rating is developed matters just as much as the rating itself.

A more transparent rating

As part of this commitment, AfI has made its regulatory and governance framework publicly available. This includes information on the AFISAR© methodology, the rating process, pricing principles, complaints and feedback handling, and the management of conflicts of interest.

For microfinance institutions preparing for a sustainability rating, and for investors comparing institutions, this gives a clear view of how ratings are built and assessed.