CSRD: EFRAG Publishes XBRL Taxonomy for European Sustainability Reporting Standards

On August 30, 2024 the European Financial Reporting Advisory Group (EFRAG) published the long-awaited eXtensible Business Reporting Language (XBRL) Taxonomy for European Sustainability Reporting Standards (ESRS) Set 1. This taxonomy which enables the digital tagging of ESRS statements by providing XBRL elements, or ‘tags,’ for every datapoint and dimensional disaggregation defined in the ESRS disclosure requirements. An XBRL software should be used to process the XBRL taxonomy. Please visit the EFRAG website for more information.

Next Steps

• This taxonomy will be the basis for the European Securities and Market Authority (ESMA) to develop Regulatory Technical Standards (RTS) for tagging the ESRS sustainability statement.
• The final RTS, adopted by the ESMA, will then be adopted by the European Commission through a Delegated Act amending the European Single Electronic Format (ESEF) Regulation.

Impact on the first CSRD Report in 2025

As stated in the recently published FAQ by the European Commission, until the European Commission adopts the specific digital taxonomy, companies are not required to mark up their sustainability statements or prepare the reports in XHTML format. Please read our previous blogpost for more information.

Even though digital tagging of ESRS won’t be required for companies until the European Commission adopts the XBRL taxonomy as part of the ESEF RTS, EFRAG encourages interested stakeholders to utilize the XBRL taxonomy for preparing human-readable ESRS statements and consider voluntary tagging.

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