In a significant regulatory shift, the European Union has introduced updated enforcement guidelines to ensure sustainability disclosures are supervised with the same rigour as financial reporting. Effective 1 January 2025, national regulators across the EU will implement a harmonised enforcement approach under the Transparency Directive.
The guidelines outline how regulators should:
-
Select companies for sustainability disclosure reviews
-
Evaluate the completeness and accuracy of reported ESG information
-
Take enforcement actions where reporting falls short of expectations
Additionally, the update enhances coordination between EU regulators, introducing shared enforcement priorities, case-level collaboration, and a centralised decision-making database.
This move reinforces the EU’s commitment to consistency, comparability, and accountability in sustainability reporting. As ESG data becomes an integral part of corporate disclosures, these changes signal a clear shift: assurance and enforcement are now central to building stakeholder trust.
At EcoActive, we continue to support organizations in aligning with evolving sustainability standards and maintaining compliance with emerging regulatory expectations.
| Find out more here. |
