The European Securities and Markets Authority (ESMA) has published the findings of its 2024 Common Supervisory Action (CSA) on ESG disclosures under the Benchmarks Regulation (BMR), marking a significant step in the EU’s ongoing efforts to enhance transparency and consistency in sustainable finance.
The review, conducted in collaboration with national competent authorities, represents ESMA’s first CSA in its role as direct supervisor of benchmark administrators. The resulting report outlines several key recommendations aimed at strengthening ESG disclosure practices while reducing administrative burdens.
Key Recommendations:
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Regulatory Simplification: ESMA has advised the European Commission to consider amending Level 2 BMR measures to alleviate the compliance burden on benchmark administrators, particularly in light of the increasing complexity of ESG data requirements.
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Enhanced Transparency: The report calls on benchmark administrators to improve the transparency and comparability of ESG-related information to better serve the needs of users and market participants.
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Regulatory Alignment: Emphasis is placed on ensuring that ESG disclosure obligations are harmonized across various sustainable finance regulations to support coherence within the EU’s regulatory framework.
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Supervisory Convergence: ESMA advocates for increased collaboration among national regulators, encouraging a more consistent and effective supervisory approach to ESG reporting across member states.
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