Measures to support corporate sustainability reporting
Published 14 August 2024
Category: Impact and ESG
In July, the European Securities and Markets Authority (“ESMA”) published measures to support corporate sustainability reporting. More specifically, ESMA 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.
GLESI:
The purpose with the GLESI is to provide necessary guidance to establish uniform supervisory practices in regard to sustainability reporting. The GLESI is the result of the draft Guidelines on Enforcement of Sustainability Information which were sent out for consultation in December 2023. See our previous update.
The report on GLESI sums up the feedback received from the consultation and how the feedback has been considered. Further, it includes opinions from various groups and agencies. Annex VI contains the final guidelines in full text. It consists of 22 guidelines within the following six main areas:
- Basic concepts
- Enforcers’ internal organisation
- Selection
- Examination
- Enforcement action
- European coordination
The GLESI shall apply to all competent authorities undertaking supervision of sustainability information and shall apply to enforcement of sustainability information published from 1 January 2025.
ESRS:
The public statement on ESRS shall help those large issuers who in 2025 shall publish their first sustainability statement in accordance with the Corporate Sustainability Reporting Directive (“CSRD”) and the European Sustainability Reporting Standards (ESRS). Among others, ESMA will help by referring to elements of guidance by the European Commission and the European Financial Reporting Advisory Group (EFRAG) for the issuers to consider. ESMA also wishes to highlight various key areas of attention which are of relevance when preparing ESRS sustainability statements.
Next steps: ESMA will monitor the sustainability reporting practices and the GLESI going forward. Further, ESMA will publish the GLESI translated into all EU languages on its website. When published in all official EU languages, each National Competent Authority has a two-month period within which they shall notify ESMA whether they (i) do comply with the GLESI, (ii) do not comply but intend to comply or (iii) do not comply and do not intend to do so.
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