ESG news - EFRAG publishes ESRS PoC XBRL Taxonomy
The European Parliament and Council reached an agreement on CSRD
The European Financial Reporting Advisory Group (EFRAG) has published an #XBRL Taxonomy draft which represents the European Sustainability Reporting Standard (ESRS). It can be used for digital tagging of #ESG reports. The taxonomy is considered as a working draft (“Proof-of-Concept”) and implements only a small but important part of the Environmental Climate Change standard E1. The XBRL Taxonomy is available for download as part of the Basis of Conclusion of E1 (PDF, page 44).
For financial years starting in 2024 onwards, the Corporate Sustainability Report Directive (CSRD) will require many companies in the EU to disclose sustainability reports as part of the management report using the EFRAG ESRS. EFRAG has been mandated to develop the reporting standard, which the Project Task Force (PTF) delivered as an exposure draft on the 29th of April 2022. The ESRS documents can be found here and are open for consultation till the 8th of August 2022: https://efrag.org/lab3
On the 21st of June 2022, the EU parliament and Council reached a provisional agreement on the CSRD and confirmed its implementation as planned. Some changes have been negotiated, e.g. a phase-in for different entities, so that smaller entities might have more time to do the first reporting in 2026.
Experience from Richard Bössen (Head of XBRL at AMANA and seconded to EFRAG)
Richard Bössen, the head of XBRL at AMANA is seconded to EFRAG. He worked on the XBRL taxonomy and was willing to share his experience: “Digitalization is key for sustainability reporting, because it allows report users to automatically consume and analyze the data points. By providing a digital XBRL taxonomy that is developed together with the standard and reflects it 100%, it will be very simple for preparers to tag their reports accordingly. The use of Inline XBRL will allow companies to tell their own story in glossy reports, while enabling users to extract the standardized digital data points in real time with ease.”
Financial and ESG reporting with AMANA software
Thanks to its certified and generic implementation, AMANA based tagging solutions, like the XBRL Tagger or our disclosure management SmartNotes, can simply load the ESRS XBRL taxonomy for tagging right away. By using direct data interfaces for different ESG data collection and calculation software solutions (e.g. Sphera or LucaNet), combined financial and ESG reporting is enabled quick and easy. The tagging tools allow you to load and tag multiple XBRL taxonomies at the same time, e.g., the ESEF taxonomy and EFRAG/ISSB taxonomy. AMANA XBRL tagging solutions are used by more than 1000 entities across the EU already.
Learn more in our webinar "ESG Reporting with AMANA: Automated Data Flow and integrated XBRL Tagging" on 07.09.22 from 14:00 - register now!