ESMA sets strict 2024 priorities, with double materiality at the forefront

Posted on November 3, 2024 by Editor

Last week the European Securities and Markets Authority (ESMA) rolled out its 2024 European Common Enforcement Priorities (ECEP) for corporate reporting. This year, the European Securities and Markets Authority (ESMA) is doubling down on "double materiality," the idea that sustainability reporting should capture not only financial impacts but also broader social and environmental ones. In other words, it's not just about what affects your bottom line, but how your company affects everything else.

For 2024, ESMA is focusing on three main areas: financial disclosures, materiality-driven sustainability reporting under the European Sustainability Reporting Standards (ESRS), and improvements to digital filing quality in the European Single Electronic Format (ESEF). ESMA's stance on quality reporting is direct and leaves little room for ambiguity-liquidity risks, comprehensive materiality assessments, and error-free digital filings are no longer negotiable in the quest for clear, transparent reporting.

This year's guidance underscores the importance of integrating financial and sustainability perspectives, giving stakeholders a full view of corporate performance. The aim? To strengthen trust in public disclosures by helping companies tell a complete story.

For a full breakdown of the 2024 priorities, check out ESMA's announcement here.