EU markets regulator, the European Securities and Markets Authority (ESMA), has added ESG disclosures to its Union Strategic Supervisory Priorities (USSPs), which it uses to coordinate supervisory action with national competent authorities (NCAs).
In an October 27 press release, ESMA said it will foster transparency and comprehensibility of ESG disclosures across key segments of the sustainable finance value chain such as issuers, investment managers or investment firms as it moves to tackle greenwashing.
The regulator explained that the decision marks an important step in the implementation of its 2023 to 2028 strategy, which focuses on effective financial markets and financial stability as well as supervision and supervisory convergence.
ESMA is aiming to promote increased scrutiny on ESG disclosures and build supervisory capabilities to fully embed sustainable finance into supervisory culture. It added that together with NCAs, it will be taking active steps to “protect investors and facilitate investments in a credible ESG market.”
The authority stated the partnership will include work on monitoring the evolution of costs as an element for investors protection and working together in the areas of ESG disclosures and market data quality.