The European Securities and Markets Authority (ESMA), the European Union’s financial markets regulator and supervisor, has published a Final Report on the Guidelines on Enforcement of Sustainability Information (GLESI) and a Public Statement on the initial application of the European Sustainability Reporting Standards (ESRS). These documents aim to support the consistent application and supervision of sustainability reporting requirements.
The GLESI Guidelines provide guidance to harmonise supervisory practices on sustainability reporting across the EU. Through the Public Statement on ESRS ESMA intends to assist large issuers in navigating the new sustainability reporting requirements, aiding them through the learning curve associated with implementing the ESRS for the first time.
The guidelines and statement align with recommendations from ESMA’s recent Position Paper, “Building more effective and attractive capital markets in the EU.” Key recommendations include promoting green finance, reducing complexity and enhancing supervisory consistency. Promoting green finance talks of efforts to clarify sustainability information disclosure, which will aid investor comprehension, including the potential use of sustainability labels and categories. Reducing complexity would focus on simplifying and clarifying reporting requirements so compliance burdens for the industry can be eased. When By enhancing supervisory consistency harmonised enforcement outcomes will be fostered through enhanced cooperation and convergence among EU National Authorities.
ESMA will continue to monitor sustainability reporting practices in 2025 and the application of GLESI. The guidelines will be translated into all EU languages and made available on ESMA’s website.
In Q4, ESMA will release recommendations related to the sustainability statements of listed companies in its Public Statement on the 2024 European Common Enforcement Priorities.
