Companies' sustainability reports place too much emphasis on positive effects and can understate negative ones, the European Securities and Markets Authority says. ESMA found imbalances in the sustainability information supplied by companies. The regulator will concentrate its supervision on the methods companies use to assess harmful effects. It will examine whether stated targets are coherent with the outcomes and results reported by listed companies. The review also covers the performance information presented to markets, where overstatement could give a distorted picture of progress. Rather than simply calling for more disclosure, the review targets the balance and credibility of what companies publish. That focus signals closer scrutiny of the evidence behind corporate sustainability claims.