The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator, has published the results of its 2024 Common Supervisory Action (CSA) on environmental, social, and governance (ESG) disclosures under the Benchmarks Regulation (BMR).
This marks the first CSA conducted by ESMA in collaboration with National Competent Authorities (NCAs) since it assumed direct supervisory responsibilities over benchmark administrators. The review has led to two sets of recommendations—one directed at the European Commission (EC) and another at benchmark administrators.
ESMA has proposed potential amendments to the BMR Level 2 measures, aimed at reducing the regulatory burden on benchmark administrators. Additionally, it has issued guidance to administrators intended to improve the clarity, transparency, and comparability of ESG-related disclosures for benchmark users.
The report also considers the broader regulatory framework for sustainable finance and underlines the importance of aligning ESG disclosure requirements across existing EU legislation to ensure consistency and coherence.
ESMA will continue to engage with national supervisors and the European Commission to follow up on the findings. Planned actions include the use of supervisory convergence tools to reinforce a consistent and effective supervisory approach across the EU, particularly in the area of ESG transparency.
The findings form part of ESMA’s broader efforts to support the development of sustainable finance within the EU’s capital markets framework.
