The European Securities and Markets Authority has published its review of 2025 corporate reporting enforcement across the European Economic Area, covering IFRS financial reporting, sustainability reporting and digital reporting under the European Single Electronic Format. The report highlights the first year of enforcement of the European Sustainability Reporting Standards in in-scope jurisdictions alongside the application of the Guidelines on Enforcement of Sustainability Information, and finds that issuers generally met ESMA’s 2024 European Common Enforcement Priorities but still showed recurring weaknesses in entity-specific accounting disclosures, connectivity between sustainability and financial reporting, and the completeness and accuracy of digital tagging. National enforcers examined 628 IFRS issuers, or 16 percent of the IFRS population, and took actions in 41 percent of ex-post examinations, mostly requiring corrections in future financial statements, with the main issues involving financial instruments, impairment of non-financial assets, presentation of financial statements and operating segments. In sustainability reporting, enforcers carried out 402 examinations and took actions against 109 issuers, a 30 percent action rate for content examinations, with most CSRD and ESRS actions relating to climate disclosures under ESRS E1 and general disclosures under ESRS 2. For ESEF, 2,995 filing examinations produced a 9 percent action rate and 613 markup examinations produced a 13 percent action rate, while ESMA’s targeted review of the 2024 ECEP found that most issuers had improved their digital reporting but some still omitted mandatory tags, comparative amounts and appropriate anchoring for extension elements.
European Securities and Markets Authority 2026-05-07
European Securities and Markets Authority publishes 2025 corporate reporting enforcement review with first year ESRS findings and higher IFRS action rates
The European Securities and Markets Authority has published its 2025 review of corporate reporting enforcement across the European Economic Area, covering IFRS financial reporting, sustainability reporting and European Single Electronic Format digital reporting, and noting the first year of enforcement of the European Sustainability Reporting Standards. While issuers generally met the 2024 European Common Enforcement Priorities, national enforcers reported high intervention rates, with recurring weaknesses in entity-specific accounting disclosures, connectivity between sustainability and financial reporting, and completeness and accuracy of digital tagging.