The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has announced that it will assess compliance with ESG disclosures rules under the Benchmarks Regulation (BMR). The ‘Common Supervisory Action’ (CSA) will cover the disclosure of ESG factors in benchmark statements and in benchmark methodologies and specific disclosure requirements regarding climate benchmark methodologies. ESMA believes the initiative, and the related sharing of practices across member states’ regulators, will help ensure the consistent and effective supervision of the ESG disclosures of supervised benchmark providers across the European Union, and enhance the comparability of the information provided to users of benchmarks. ESMA added that the CSA will contribute to enhancing transparency and addressing greenwashing, with a view to protecting investors and further supporting the development of a credible ESG market. The CSA will be carried out during 2024, until Q1 2025. As part of the CSA, ESMA and country regulators will share knowledge and experiences to foster convergency in how they supervise ESG disclosure requirements for benchmark administrators.
