2. Outsourcing

(a)

the service provider has the ability, capacity, and any authorisation required by law, to perform the outsourced functions, services or activities reliably and professionally;

(b)

the ESG rating provider takes appropriate action if it appears that the service provider might not be carrying out the outsourced functions effectively and in compliance with applicable law and regulatory requirements;

(c)

the ESG rating provider retains the necessary expertise to supervise the outsourced functions effectively and to manage the risks associated with the outsourcing;

(d)

the service provider discloses to the ESG rating provider any development that might have a material impact on its ability to carry out the outsourced functions effectively and in compliance with applicable law and regulatory requirements;

(e)

the ESG rating provider is able to terminate the outsourcing arrangements where necessary;

(f)

the ESG rating provider takes reasonable steps, including contingency plans, to avoid undue operational risk related to the participation of the service provider in the ESG rating determination process.