- Streamlined Reporting: Proposals aim to simplify sustainability and financial disclosures using a phased digital approach.
- Investor Access: Integrated data will enhance investment strategies via the European Single Access Point (ESAP).
- Implementation Timeline: Full adoption of new standards expected by Q3 2025.
The European Securities and Markets Authority (ESMA) has launched a consultation to gather input on digitalizing sustainability and financial disclosures through the European Single Electronic Format (ESEF). The goal? To provide investors with easily accessible, comparable, and actionable information.
Why it matters:
As investors increasingly rely on data-driven strategies, streamlined and digitalized disclosures are critical for aligning investment decisions with sustainability goals.
“It is a priority for ESMA that investors are able to effectively access relevant and comparable information,” the authority stated in its announcement.
Related Article: ESMA Sets 2024 Corporate Reporting Priorities, Emphasizes Double Materiality and Sustainability Compliance
Key proposals include:
- Mark-up rules for sustainability reporting:
A phased implementation of the European Sustainability Reporting Standards (ESRS) will roll out over six years, culminating in full integration of Article 8 disclosures. - Redefining financial statement mark-ups:
Updates to the approach for annotating notes within IFRS consolidated financial statements aim to ease reporting complexity. - Regulatory adjustments:
Proposed changes to the Regulatory Technical Standards will support the effective implementation of the European Electronic Access Point.
Next steps:
Stakeholders—including listed companies, auditors, investors, and data analysts—have until 31 March 2025 to provide feedback. ESMA will evaluate input by Q2 2025, with a final report and technical standards submitted to the European Commission for endorsement by Q3 2025.
This initiative sets the foundation for a more transparent and efficient reporting system, ensuring better access to vital data for sustainable investing.
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