Europe’s financial authorities warn against loosening of sustainability reporting rules
“These [reliefs] will significantly reduce transparency for investors and other market participants."
The European Central Bank (ECB) and European Securities and Markets Authority (ESMA) have published separate opinions to warn legislators that reducing sustainability reporting obligations for companies could pose risks for the financial sector.
As EFRAG works to finalise amendments for the European Sustainability Reporting Standards (ESRS) – which will form the basis for the Corporate Sustainability Reporting Directive (CSRD) compliance – the two financial sector regulators are making it clear that detailed disclosures are necessary for Europe’s financial system.
