ESMA consults on draft guidelines for supervision of corporate sustainability information

ESMA launched a consultation on Draft Guidelines on Enforcement of Sustainability Information (GLESI), aiming to ensure consistent supervision by NCAs over listed companies‘ sustainability information in line with the CSRD, ESRS, and the TR.
The primary goals of these guidelines are twofold. Firstly, ESMA seeks to ensure that NCAs supervise sustainability information of listed companies in a converged manner. This involves adhering to the requirements outlined in the CSRD, ESRS, and Article 8 TR. Secondly, the guidelines aim to establish consistency and equally robust approaches in supervising both sustainability and financial information of listed companies. This alignment is expected to enhance connectivity between the two types of reporting.
The background of the guidelines is rooted in the CSRD, which expands the scope of reporting on sustainability matters and mandates the adoption of ESRS. The guidelines are intended to promote convergent supervision of sustainability reporting by issuers under the Transparency Directive.
ESMA’s drafting approach involves using its existing GLEFI as a basis, aligning the guidelines as closely as possible with GLEFI to ensure consistency in enforcement approaches. The document acknowledges the newer requirements of the sustainability information framework and anticipates a learning curve for all parties involved, particularly issuers preparing sustainability information for the first time.
ESMA plans to consider the feedback received and publish the final guidelines in the third quarter of 2024. The guidelines are principles-based and are proposed to be applicable from 1 January 2025, with the enforcement cycle starting in that year.