ESG stands for Environment, Social, Governance and ensures that companies not only assess their financial performance, but also their impact on society and the environment. ESG certification is a formal process in which properties or companies are reviewed for performance and practices with regard to ESG aspects. It serves as an indicator that certain ESG standards have been met. The sustainability risks and their impact on society and the environment are assessed. As the EU Commission believes there is a lack of transparency in the ESG rating market, it proposed a regulation in February 2024 to improve the reliability and transparency of ESG ratings. In future, providers of ESG ratings must be authorised and supervised by ESMA and fulfil certain transparency requirements.