EFRAG delivers proposed XBRL Taxonomy for ESRS and Article 8
On 30 August 2024, EFRAG published its propositions of XBRL Taxonomy, which will be used for tagging sustainability information published in accordance with ESRS Set 1 and with Article 8 of Regulation (EU) 2020/852 on the European Taxonomy. The documents are accompanied by explanatory notes and illustrative examples of how to implement the each taxonomy.
Find out more about the propositions of XBRL Taxonomy
EFRAG was requested by the EC to provide technical support on the transposition of disclosure requirements relating to ESRS Set 1 and to Article 8 into a digital taxonomy using the XBRL (eXtensible Business Reporting Language) markup language. Using the taxonomy, each datapoint is assigned an XBRL tag. The aim is to make sustainability information machine-readable, in accordance with the rules set out in the CSRD, which requires tagging of information and publication of the management report, which includes the sustainability statement and thus Article 8 disclosures, in the XHTML format.
Drafts XBRL taxonomy were published for comment by EFRAG in February 2024, via two separate consultations (which ran until 8 April). One consultation focused on tagging of ESRS disclosures, and the other on Article 8 disclosures. EFRAG has taken stakeholders’ comments into account when developing its final proposals.
In practice, the two taxonomies will serve as a basis for the work that ESMA (the European Securities and Markets Authority) must now carry out. ESMA has been requested by the EC to develop the associated Regulatory Technical Standards (RTS). The RTS will eventually be adopted by the EC by way of a delegated act amending Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF), which already applies to annual financial reporting.
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