ESMA Statement on the results of the Common Supervisory Action on MiFID II sustainability aspects
In the course of 2024 and 2025, the European Securities and Markets Authority (“ESMA”) performed a Common Supervisory Action (“CSA”) with national competent authorities (“NCAs”) across the EU/EEA on how sustainability is integrated into investment firms’ as well as credit institutions’ suitability assessments as well as into their processes and procedures for product governance.
On 6 May 2026, ESMA published a statement on the results of the CSA (ESMA’s Statement) in which it reaffirms the high importance it attaches to sustainable finance and to the effective integration of sustainability considerations in the provision of investment services.
The summary of key findings highlights that firms have continued to make progress in integrating the MiFID II sustainability requirements into their suitability and product governance processes. At the same time, the CSA confirms that practices remain uneven across firms and jurisdictions, and that further improvements are needed in several areas.
In its statement, ESMA however acknowledges that the CSA has been conducted at a time when the sustainable finance framework is undergoing significant changes and invites NCAs to adopt a proportionate supervisory approach, encouraging dialogue with firms to address identified issues during this period of transition rather than prioritising enforcement actions, without prejudice to cases involving clear breaches or mis-selling.
In line with its supervisory priorities in the area of sustainable finance (update March 2026, CSSF’s supervisory priorities in the area of sustainable finance), the CSSF will continue to oversee the application of MiFID sustainability-related rules through a proportionate supervisory approach. This means that the scope and intensity of supervisory actions will take into account not only the specific risks and circumstances of the entities concerned, but also the potential evolution of the regulatory framework.