ESMA announces 2025 European Common Enforcement Priorities and results of fact-finding on materiality considerations in sustainability reporting

14/10/2025

The European Securities and Markets Authority (ESMA), the European financial markets regulator and supervisor, has outlined the European Common Enforcement Priorities (ECEP) for the 2025 annual financial reports of listed issuers.

ESMA asks issuers to focus on the following areas in their 2025 annual financial reports, in addition to general considerations:

• IFRS financial statements:
  • Geopolitical risks and uncertainties
  • Segment reporting
• Sustainability statements:
  • Materiality considerations in reporting under the European Sustainability Reporting Standards (ESRS)
  • Scope and structure of the sustainability statements
• ESEF digital reporting:
  • Common ESEF filing errors found in the Statement of Cash Flows

This year’s priorities reaffirm ESMA’s commitment to simplification and burden reduction, while maintaining a strong focus on investor protection and market stability.

In addition, the statement published today highlights the importance of connectivity between financial and sustainability information, recent IFRS developments, and consistent use of alternative performance measures.   

ESMA has also published a fact-finding exercise on the 2024 corporate sustainability reporting practices by European issuers under ESRS Set 1. It examines disclosures on the double materiality assessment process and its outcomes, providing insights on enforcement priorities and future regulatory improvements.

Next steps

Issuers, auditors and supervisory bodies should consider the topics and recommendations when preparing, auditing, and supervising the 2025 annual financial reports. Issuers should take the recommendations into account based on their materiality and relevance for the issuer’s operations and annual financial report.

 Further information:

Iris Hude, Communications Officer, press@esma.europa.eu

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