On 6 June 2023, the European Securities and Markets Authority (ESMA) announced the launch of a common supervisory action (CSA) with Member State competent authorities (NCAs) on sustainability-related disclosures and the integration of sustainability risks.

The aim of the CSA is to assess the compliance of supervised asset managers with the relevant provisions in the Sustainable Finance Disclosure Regulation (SFDR), the Taxonomy Regulation and relevant implementing measures, including those relevant provisions in the UCITS and AIFMD implementing acts on integration of sustainability risks.

Using a common methodology, developed by ESMA, the NCAs will share knowledge and experiences on how to foster convergence in how they supervise sustainability related disclosure. Among the main objectives is to:

  • Assess whether market participants adhere to applicable rules and standards in practice.
  • Gather further information on greenwashing risks in the investment management sector.
  • Identify further relevant supervisory and regulatory intervention to address the issue.

In 2023, continuing until Q3 2024, NCAs will undertake their supervisory activities and share knowledge and experiences through ESMA to foster convergence in how they supervise sustainability-related disclosures and sustainability risk integration in asset managers.