ESMA Issues Public Statement In Relation To Sustainability Disclosures In Prospectuses

On the 11th of July 2023, the European Securities and Markets Authority (ESMA) published a statement¹ underlining its expectations with respect to the nature and extent of sustainability disclosures to be included in both equity and debt prospectuses prepared in accordance with the Prospectus Regulation.²

In setting out the rationale behind this statement, ESMA notes that notwithstanding the European Commission's plans (which are currently in the pipeline) to tackle sustainability-related disclosures as part of the proposed Listing Act³ and EU Green Bond Standard⁴ (EU GBS), any prospectuses published in the interim period should include sustainability-related disclosures to the extent that these are considered 'material' to an investor in accordance with article 6 of the Prospectus Regulation. When determining what exactly constitutes 'material' information, ESMA states that the specific circumstances of the issuer, as well as the nature of the securities in