EU Markets Watchdog Signals a Hard Line on New ESG Disclosures

Europe’s financial markets watchdog said companies shouldn’t anticipate that the complexity of new ESG reporting requirements will excuse sloppy disclosures.

The European Securities and Markets Authority acknowledged that complying with the new European Sustainability Reporting Standards creates “challenges” for companies, and the first reports, due next year for the largest firms, will constitute a “milestone in the learning curve of issuers,” according to a statement on Friday.

Still, ESMA said that “acknowledging this learning curve does not relieve issuers from the responsibility to ensure compliance with ESRS.”

Companies will have to report and get audits on hundreds of environmental, social ...