ESMA released 2025 priorities for financial and sustainability reporting
ESMA released 2025 priorities for financial and sustainability reporting
ESMA has published its 2025 European Common Enforcement Priorities. These priorities recommend issuers to focus on geopolitical risks and uncertainties and segment reporting for IFRS financial statements, and on materiality considerations in sustainability disclosures when reporting in accordance with European Sustainability Reporting Standards (ESRS), as well as scope and structure for the sustainability statements. It also highlights areas such as common ESEF filing errors found in the Statement of Cash Flows as well as importance of connectivity between financial and sustainability information, among other priorities.
ESMA also published a fact-finding exercise on the 2024 corporate sustainability reporting practices by European issuers under ESRS Set 1.
Some key findings of the report are as follows:
ESMA also published a fact-finding exercise on the 2024 corporate sustainability reporting practices by European issuers under ESRS Set 1.
Some key findings of the report are as follows:
- Double materiality - boilerplate disclosures and lack of entity-specific judgment were common, especially for impact materiality.
- For description of Impacts, Risks, and Opportunities (IROs) - mapping IROs to ESRS topics was inconsistent, making it hard to assess alignment.
- 70% of the issuers disclosed entity-specific information, showing understanding of the need to complement ESRS disclosures but ESMA has reminded that such disclosures should not replace standard ESRS requirements.