The European Securities and Markets Authority (ESMA) has outlined its key priorities for sustainability reporting enforcement, focusing on materiality assessments, impacts, risks, opportunities and targets. The regulator aims to enhance the transparency, consistency and reliability of corporate sustainability disclosures, ensuring that companies provide relevant information about their environmental and social performance.
ESMA will pay particular attention to how companies identify sustainability-related impacts, risks and opportunities, and establish measurable targets. Businesses are expected to clearly communicate their sustainability commitments, progress and challenges while ensuring consistency between sustainability disclosures and financial reporting. The initiative aims to strengthen corporate accountability and improve the quality of sustainability information available to investors and other stakeholders.
Reference: ESG Today
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