The Common Supervisory Action (CSA) was launched on July 6 by the European Securities and Markets Authority (ESMA) with the aim to cooperate with National Competent Authorities (NCAs) on sustainability-related disclosures and the integration of sustainability risks.

The CSA will assess asset managers' compliance with the Sustainable Finance Disclosure Regulation (SFDR), the Taxonomy Regulation and relevant implementing measures.

The CSA have 3 main objectives:

• Assess whether market participants effectively adhere to applicable rules and standards

• Gather additional information on greenwashing risks in the investment management industry

• Identify further relevant supervisory and regulatory intervention to address the issue

As stated by ESMA :“greater convergence in the supervision of risks stemming from incorrect and misleading disclosures is central to the effort to foster transparency.”

The collaborative work is scheduled to start this year and run until Q3 2024.