EU steps up enforcement of sustainability disclosures

Posted on May 12, 2025 by Editor

The European Securities and Markets Authority (ESMA) has issued new guidelines to ensure that sustainability information from listed companies is supervised with the same seriousness as financial reporting. From 1 January 2025, national regulators across the EU are expected to apply a harmonised enforcement approach under the Transparency Directive.

The guidelines set out how regulators should select companies for review, examine disclosures, and respond when sustainability statements fall short. They also establish stronger coordination between regulators, with shared enforcement priorities, case discussions, and a common decision database. The aim is consistency, comparability-and accountability.

As sustainability reporting becomes embedded in corporate reporting cycles, expectations are shifting. These guidelines are a clear signal that assurance and enforcement need to evolve in parallel, ensuring disclosures are not only made but also monitored and trusted.

The guidance, including detailed examination methods and enforcement pathways, is available here.