The European Securities and Markets Authority (ESMA) has launched a Common Supervisory Action (CSA) focused on sustainability disclosures and risks in the investment fund sector. The regulator announced in a press release that it will be working with National Competent Authorities (NCAs) to assess the compliance of asset managers with directives such as the Sustainable Finance Disclosure Regulation (SFDR) and Taxonomy Regulation.
The CSA will take place between now and Q3 2024. NCAs will share their knowledge and experiences with ESMA in order to “foster convergence in how they supervise sustainability related disclosures”.
ESMA states that convergence in the supervision of risks stemming from incorrect disclosures is central to its effort to foster transparency. The CSA is expected to promote transparency by “improving the comprehensibility of ESG disclosures by asset managers”. The findings of this exercise will also be used in a final report on greenwashing.