European Securities Markets Authority: 2022 Annual Work Programme

The European Securities Markets Authority (‘ESMA’) will further develop it’s Sustainable Finance Strategy in 2022 to support the EU’s transition towards sustainable financial markets and convergence of approaches to integrate ESG factors across national supervisory practices. ESMA will become increasingly active on an international level by contributing to the work of The International Organization of Securities Commissions (‘IOSCOs’), The Financial Stability Board (‘FSB’), The European Systemic Risk Board (‘ESRB’) and The Network for Greening the Financial System (‘NGFS’), notably in the area of Climate Scenario Analysis practices.

ESMA will develop ESG disclosure among issuers and market participants and promote understanding of the impact of ESG factors on an investment and an investment’s contribution to a sustainable economy. Key areas to be addressed in 2022 include:

  • ESG Disclosure Framework
  • Common Approaches for National Supervisory Practices
  • Risk Identification Methodologies for ESG Factors

ESMA will ensure that ESG factors are addressed by the EU Single Rulebook, with an important role in relation to regulatory initiatives including:

  • EU Green Bonds Regulation
  • Corporate Sustainability Reporting Directive (‘CSRD’)
  • EU Taxonomy for Sustainable Activities (‘Taxonomy Regulation’)
  • Regulation on Sustainability-Related Disclosures in the Financial Services Sector (‘SFDR’)

ESMA will oversee ESG-related adjustments to regulations including:

  • Markets in Financial Instruments Directive II (‘MiFID II’)
  • Undertakings for the Collective Investments in Transferrable Securities (‘UCITS’)
  • Alternative Investment Fund Managers Directive (‘AIFMD’)
  • Benchmarks Regulation
  • Securitisation Regulation
    Sustainable Corporate Governance Initiative

ESMA will increasingly focus on facilitating development of sustainable finance markets in 2022 as it contributes to top EU strategic priorities and European Commission (‘EC ‘) initiatives, including:

  • Capital Markets Union (‘CMU’) Action Plan
  • Renewed Sustainable Finance Strategy
  • Convergence of Cross-Border Supervisory Practices on ESG Products

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