• New Guidelines: ESMA releases guidelines to standardize sustainability reporting across the EU.
• Support for Large Issuers: Guidance provided to ease the implementation of European Sustainability Reporting Standards (ESRS).
• Future Monitoring: ESMA commits to ongoing monitoring and enforcement of sustainability reporting practices.

New Measures for Corporate Sustainability Reporting

The European Securities and Markets Authority (ESMA) has unveiled its Final Report on the Guidelines on Enforcement of Sustainability Information (GLESI) and a Public Statement regarding the initial application of the European Sustainability Reporting Standards (ESRS). These documents are designed to ensure consistent application and supervision of sustainability reporting requirements across the EU.

New Guidelines

The GLESI offers a framework to harmonize supervisory practices on sustainability reporting. “Our goal is to foster a unified approach among national authorities, enhancing the clarity and comparability of sustainability information for investors,” said ESMA.

The Public Statement aims to support large issuers during the initial phase of implementing ESRS. ESMA acknowledges the learning curve associated with these new standards and intends to smooth the transition. “By providing clear guidance, we hope to facilitate a smoother adoption process for large companies,” ESMA noted.

Promoting Green Finance

Aligned with the ESMA Position Paper “Building more effective and attractive capital markets in the EU,” the guidelines focus on:

• Promoting EU capital markets as a green finance hub by clarifying sustainability disclosures.
• Reducing complexity to ease compliance burdens for the industry.
• Improving supervisory consistency among EU National Authorities through enhanced cooperation.

Future Steps

Looking ahead, ESMA will continue to monitor sustainability reporting practices in 2025 and the application of GLESI. Translations of the GLESI will be available in all EU languages on the ESMA website.

Related Article: ESMA Sets Out Rules for External Reviewers of EU Green Bonds

Additionally, ESMA plans to release recommendations concerning the sustainability statements of listed companies in its Public Statement on the 2024 European Common Enforcement Priorities in Q4.

“ESMA’s ongoing efforts aim to build a robust framework for sustainability reporting, ensuring that European capital markets remain at the forefront of green finance,” ESMA stated.