ESMA to launch and participate in Common Supervisory Action on ESG disclosures for Benchmarks Administrators

ESMA is set to initiate a CSA in collaboration with NCAs on ESG disclosures within the framework of the BMR. This marks ESMA’s first CSA as a direct supervisor of Benchmarks Administrators.
The CSA will primarily focus on evaluating compliance with ESG disclosure requirements in the BMR for supervised Benchmarks Administrators, whether located in the EU or a third country.
Key areas of scrutiny include the disclosure of ESG factors in benchmarks statements and methodologies, as well as specific disclosure requirements related to climate benchmarks methodologies. ESMA anticipates that this initiative, coupled with the exchange of practices among competent authorities, will promote consistent and effective supervision of ESG disclosures by administrators across the EU. The ultimate goal is to enhance the comparability of information available to benchmark users, contribute to transparency, and address concerns related to greenwashing.
The CSA aligns with ESMA’s strategic priorities for NCAs (eventid=17879), aiming to protect investors and support the development of a credible ESG market. The CSA is scheduled to take place from 2024 to Q1 2025, during which ESMA and NCAs will collaborate, sharing knowledge and experiences to foster convergence in supervising ESG disclosure requirements for benchmark administrators.