ESMA publishes report on 2025 Corporate reporting enforcement and regulatory activities
ESMA publishes report on 2025 Corporate reporting enforcement and regulatory activities
The European Securities and Markets Authority (ESMA) has published its report on the 2025 Corporate reporting enforcement and regulatory activities.
The report highlights key ways to improve future financial and sustainability reporting by assessing issuers’ compliance with IFRS Accounting Standards, European Sustainability Reporting Standards (ESRS), and digital reporting requirements, with the aim of enhancing market transparency and accountability.
ESMA’s and enforcers’ 2025 findings include:
The report highlights key ways to improve future financial and sustainability reporting by assessing issuers’ compliance with IFRS Accounting Standards, European Sustainability Reporting Standards (ESRS), and digital reporting requirements, with the aim of enhancing market transparency and accountability.
ESMA’s and enforcers’ 2025 findings include:
- Financial reporting – most issuers provided decision‑useful liquidity and accounting policy disclosures, though a notable minority still relied on boilerplate language or showed weaknesses in areas such as impairment, financial instruments and segments.
- Sustainability reporting - the reporting under the ESRS was generally satisfactory in its first year, but weaknesses were frequently identified in double materiality assessments, climate‑related disclosures, European Union (EU) Taxonomy reporting and links to the financial statements.
- European Single Electronic Format (ESEF) reporting - while compliance and digital tagging quality improved overall, enforcers continued to observe recurring issues with incomplete or inconsistent mark‑ups, highlighting the need for stronger processes and controls.