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.