ESMA Takes Action to Strengthen ESG Compliance and Combat Greenwashing
In a significant move towards ensuring transparency and integrity in sustainable finance, the European Securities and Markets Authority (ESMA) has initiated a comprehensive Common Supervisory Action (CSA) in collaboration with EU National Competent Authorities (NCAs). This joint effort aims to evaluate sustainability-related disclosures and the integration of sustainability risks within the investment fund sector. With a focus on asset managers operating within the European Union, the CSA is set to have a far-reaching impact on the enforcement of ESG (Environmental, Social, and Governance) regulations.