The Corporate Sustainability Reporting Directive (CSRD) is a new regulation that requires companies to disclose their sustainability information in digital format, with the goal of improving the accessibility, reliability, and comparability of these data. To achieve this, the XBRL® taxonomy is applied within the European Sustainability Reporting Standards (ESRS), which will enable the first set of CSRD-compliant reports to be published in 2025.
What is the XBRL format and why is it important?
What is the XBRL format and why is it important?
XBRL (eXtensible Business Reporting Language) is a widely used standard for financial reporting. Under the CSRD, it is now also applied to sustainability information. XBRL enables data to be more easily interpreted, verified, and compared by regulators and investors, thanks to the use of standardized tags that minimize the need for customization and facilitate comparison across companies.
What does the draft XBRL taxonomy for the ESRS include?
What does the draft XBRL taxonomy for the ESRS include?
The draft XBRL taxonomy for the ESRS sets a high level of granularity, with more than 1,000 data points distributed across 12 standards. This structure is designed to limit the use of custom tags in order to facilitate the comparison of information between companies. However, in specific cases, organizations may create custom tags if the information is not covered by the ESRS.
The ultimate goal is to store all information in the European Single Access Point (ESAP), which will be available in 2027 to centralize financial and sustainability data within the EU, improving visibility for investors and funding sources.
Key features of XBRL
- Data standardization: Facilitates the uniform exchange of financial and non-financial information between companies and regulators.
- Automation: Allows the automation of report generation and analysis.
- Taxonomies: Define financial concepts and terms to comply with different regulations.
Example of iXBRL (Inline XBRL): A variant that combines human readability with automated analysis by embedding XBRL data into HTML documents.
Benefits of the XBRL taxonomy for sustainability with Dcycle
Benefits of the XBRL taxonomy for sustainability with Dcycle
Dcycle, a technology platform focused on sustainability solutions, offers key advantages for adapting to the CSRD and the XBRL taxonomy:
- Automated compliance: Dcycle automates much of the sustainability reporting process, integrating the XBRL taxonomy and ensuring that reports comply with European standards.
- Efficient data management: Organizes data points efficiently, reducing errors and improving the comparability of information.
- Early preparation: Enables the simulation of CSRD-compliant reports before the 2026 deadline, facilitating a gradual adaptation.
- Optimization of time and resources: The digitalization of the process saves time and resources, allowing efforts to be focused on data analysis instead of administrative tasks.
Dcycle helps companies not only comply with regulations but also improve their reporting, enhancing transparency for investors and other stakeholders. This ensures an efficient transition towards more reliable and comparable reporting, optimizing operations and reducing costs.
¿Qué es XBRL y para qué se utiliza en el reporting?
XBRL es un lenguaje de etiquetado que permite describir datos financieros y de sostenibilidad de forma estructurada y legible por sistemas informáticos. En el reporting se utiliza para asociar cada concepto divulgado con una taxonomía, facilitar la comparación y automatizar la validación, el análisis y la presentación digital de la información. En el contexto de la CSRD, el etiquetado XBRL o iXBRL conecta los datos del informe con los conceptos ESRS aplicables.
