ESMA releases common enforcement priorities and thematic climate publication

ESMA releases common enforcement priorities and thematic climate publication

The European Securities and Markets Authority (ESMA) has released the following two documents:
 
  1. European Common Enforcement Priorities – 2023 annual financial reports
  2. The Heat is On: Disclosures of Climate-Related Matters in Financial Statements (thematic review)

ESMA has set out the following as its enforcement priorities for 2023:
  • Priorities related to IFRS financial statements
    • Climate and other environmental matters
      • Impact on the financial statements
    • Macroeconomic environment
  • Priorities related to non-financial statements
    • Climate and other environmental matters
      • Article 8 of the Taxonomy Regulation
      • Targets, actions and progress
      • Scope 3 emissions
  • Other considerations on APMs and ESEF
    • Identification and Consistency of APMs
    • European Single Electronic Format (ESEF) block tagging
The thematic review report provides practical examples from selected issuers’ 2022 Annual Financial Reports, pertaining to disclosures of climate-related matters in financial statements, to illustrate aspects of past recommendations and requirements published by ESMA, enforcers and the IASB.