The European Securities and Markets Authority (ESMA) has released the findings of its 2024 Common Supervisory Action (CSA), calling for regulatory relief and improved ESG transparency under the EU Benchmarks Regulation (BMR). This coordinated review—ESMA’s first in partnership with National Competent Authorities (NCAs)—marks a significant moment in its expanding supervisory role.
In its report, ESMA issued a twofold recommendation. First, it advised the European Commission to amend BMR Level 2 measures to ease the compliance burden for benchmark administrators. Second, it urged these administrators to provide clearer, more comparable ESG disclosures, enabling benchmark users to make better-informed decisions.
The review highlighted the importance of streamlining ESG reporting across the EU’s sustainable finance framework to avoid inconsistencies and support regulatory coherence. In parallel, ESMA committed to working with national authorities to foster a unified supervisory culture, particularly around ESG transparency and reliability.
“The objective is to alleviate the regulatory burden on benchmark administrators and to enhance transparency and comparability of ESG information for the benefit of users of benchmarks,” the report stated.
These developments align with the EU’s broader efforts to strengthen sustainable finance through smarter regulation and more effective market oversight. As ESG factors play an increasingly central role in financial decision-making, ESMA’s recommendations aim to strike a balance between regulatory efficiency and investor trust.
