European Securities and Markets Authority (ESMA)’s Post

🔥= §35. #ESMA notes that, as a general rule, the #ESRS do not envisage cases in which the #lack of #data justifies the omission of disclosure of material information... are you ready ? 🌱#reporting #csrd #esrs #sustainablefinance #dataESG

Great to see European Securities and Markets Authority (ESMA) putting out those key documents to support the consistent application of the #ESRS and related supervision and enforcement. Issuers will need all the help possible as they prepare for first-time implementation of the reporting standards. Trustworthy #sustainability disclosures are the ultimate #publicinterest goal and International Ethics Standards Board for Accountants (IESBA) is working at pace to ready the global #ethics and #independence standards by the end of this year to support all preparers and assurance providers towards that goal.

Another milestone for our area, ESMA published two relevant documents. The first document is a PUBLIC STATEMENT ''Off to a good start: first application of ESRS by large issuers'' supporting the first time application of ESRS and highlighting key areas of attention which, in ESMA's view, are of particular relevance in the preparation of ESRS sustainability statements; the second is about Guidelines on Enforcement of Sustainability Information. and it presents the outcomes of the due process that will informa the final version of the GLESI. Issuers and other involved parties in the adoption of the requirement of the CSRD in Europe will benefit from these!

The changeover from #NFRD to #CSRD will require significant efforts by issuers. ESMA and national supervisors have just agreed on a set of common guidelines - the GLESI - to ensure #supervisoryconvergence in this important area of the #sustainablefinance framework. In parallel with this, ESMA has also issued a public statement to support the first-time application of the #ESRS by large issuers.

Two important updates from ESMA just in time for the weekend! Firstly a statement on the first application of ESRS next year where Esma highlights: (i) elements of guidance by the European Commission and EFRAG; and (ii) key areas of attention which, in ESMA's view, are of particular relevance in the preparation of ESRS sustainability statements. In addition ESMA publishes the final report on the Guidelines on Enforcement of Sustainability Information, GLESI, setting out the framework for national competent authorities supervision of issuers sustainability statements. #CSRD #ESRS #GLESI

A good summary of the developments in the EU for sustainability reporting. Some important points on the Double Materiality Assement (DMA), taxonomy and building trust though transparent communication. Highlighting the implementation guidance and interoperability guidance on the ESRS and ISSB standards as key guides for reporters.

While the topics raised are important, significant effort will be required to address the related challenges. The following steps are recommended: • A thorough double materiality assessment is required to build the foundation of a reliable and trustworthy sustainability report. Shortcomings during this process could ultimately undermine general trust in the sustainability report. • Undertakings that have already performed procedures under the current EU Non-Financial Reporting Directive (NFRD) would need to extend their efforts. As the universe of sustainability matters to be considered has increased, the determination of material impacts, risks and opportunities has broadened and the reporting format has changed. • ESMA reminds preparers to include in their sustainability statements disclosures pursuant to Art. 8 EU Taxonomy, which states in scope entities to include information on how and to what extent their activities are associated with taxonomy aligned economic activities in their sustainability report. Preparers, especially first time adopters not subject to NFRD in the past, will need to get become familiar with related disclosure requirements of the environmental taxonomy. • Finally, transparency, trust and open communication are key aspects of a compliant ESRS sustainability report. Stakeholders are also reminded of the importance of the determination of a transition plan for climate change mitigation and its disclosure in the sustainability report. Though the ESRS’s are comprehensive, they provide relief and transitional provisions. It is the responsibility of the issuer to report on exceptions applied and how the reporting gaps will be resolved in the future. #SustainabilityReporting #ESG #ESMA #CorporateResponsibility #CSRDCompliance #SustainableBusiness #GreenFinance

ESMA n Sustainability Reporting: A useful read - especially for financial services, in the absence of sector specific standards, the use of entity specific metrics to provide decision useful information to readers of the Annual Report on material impacts, risks and opportunities.

#ESMA #CSRD #Sustainability ESMA puts forward measures to support corporate sustainability reporting The European Securities and Markets Authority (ESMA), the EU’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 first application of the European Sustainability Reporting Standards (ESRS). These documents will support the consistent application and supervision of sustainability reporting requirements. The purpose of the GLESI is to provide guidance to build convergence on supervisory practices on sustainability reporting. Statement on the first-time application of the ESRS, ESMA intends to support large issuers in going through the learning curve associated with the implementation of these new reporting requirements. The guidelines and statement are in line with recommendations proposed in the recently published ESMA Position Paper“Building more effective and attractive capital markets in the EU” namely:  - promoting EU capital markets as a hub for green finance – this should include efforts to clarify the disclosure of sustainability information to aid comprehension by investors, also through the use of sustainability labels/categories as necessary; reducing complexity and enhancing clarity for the industry can also serve to ease compliance burdens; and - improving supervisory consistency amongst EU National Authorities – fostering harmonised enforcement outcomes through enhanced cooperation and convergence  For further information, pls see below. Best regards Hartmut Renz https://lnkd.in/e2GhkyPi

Business Partners, BDO has released International Sustainability Reporting (ISR) Bulletin 2024/02 Q1 Sustainability Reporting Jurisdictional Update, which includes information on developments in various jurisdictions including the European Union and the US. In particular, this publication includes information on the US Securities and Exchange Commission’s recent adoption of the climate-related disclosure rules. This ISR Bulletin also contains summaries of major events in sustainability reporting in jurisdictional sustainability reporting around the world. #SustainabilityReporting #ClimateDisclosure