The Importance and iXBRL Objective for the Reporting of Sustainability under the ESRS Standards (CSRD)
Ecomundis, a consulting firm specialized in sustainability reporting, participates in the iXbrl Spain Day to introduce aspects on the preparation of ESG information and data in view of the entry into force of the CSRD Directive and the iXbrl digital presentation.
The event provided a comprehensive overview of the challenges and opportunities presented by compliance with ESRS standards under the ESEF(European Single Electronic Format) system. Aspects such as the collection and pre-generation of non-financial information, the diverse typology of data points and the options for their conversion into XBRL(Extensible Business Reporting Language) were addressed. Some specialized applications and platforms were presented as key enabling tools to meet the requirements of digital reporting.
Also noteworthy is the presentation of the timetable and the new format proposed by ESMA (European Securities and Markets Authority), as well as the registration format, which is expected to involve a single package integrating both the financial and sustainability formulation.
iXBRL objective in the Reporting of Sustainability.
The Inline XBRL (iXBRL) format represents a crucial advance in the digitization of corporate information, particularly in the field of sustainability reporting, now governed by the European Sustainability Reporting Standards (ESRS). This format allows the integration of both human- and machine-readable information in a single document, thus facilitating data accessibility, transparency and interoperability.
The main objective of iXBRL is to transform sustainability reporting into digitally accessible and structured formats, aligning with the vision of the European Union's Corporate Sustainability Reporting Directive (CSRD). This includes:
- Standardization: Ensure that the data reported by companies comply with a uniform structure based on the XBRL taxonomy of the ESRS.
- Interoperability: Allow seamless connection with other international reporting standards, such as ISSB and GRI.
- Accessibility: Facilitate stakeholder access to key information through the European portal ESAP (European Single Access Point).
Importance of iXBRL
- Efficiency in Data Analysis: Digitization with iXBRL enables analysts, regulators and other users to extract and analyze structured information directly from reports, improving the speed and accuracy of sustainability data evaluation.
- Transparency and Comparability: The granularity of iXBRL enables comparability across companies and sectors, highlighting environmental, social and governance (ESG) impact metrics.
- Facilitates Regulatory Compliance: By automating much of the reporting process, companies can easily align with increasing EU regulatory requirements.
Data points to be reported
- 12 main ESG categories, with a total of 86 subcategories.
- 1 cross-sectional: ESRS2
- 5 environmental: E1, E2,E3, E4, E5
- 4 social: S1, S2, S3, S4
- 1 of governance: G1
- 783 data points mandatory
- 161 (21%) always
- 622 (79%) subject to dual materiality analysis
- 269 voluntary data points
- Of these, about 60% are of a narrative nature.
- Of the total number of data points, 45% are environmental, 34% social, 5% governance and the remaining 16% are cross-cutting.
- In the case of numerical data points, 64% are environmental, 20% social, 4% governance and the rest cross-cutting.
Tentative adaptation schedules
The European Securities and Markets Authority (ESMA) has launched its public consultation on the regulatory technical standards (RTS) that will require companies to digitize their ESRS sustainability reporting (and Article 8 taxonomy reporting) using the XBRL standard.
Mandatory labeling for PIEs (Public Interest Entities)
- Fiscal year 2026 or 2027, as adopted by the EC
- Large non-PIE companies will have an additional year.
Practical example:
🟣 If the RTS Publication is before June 30, 2026 (e.g., in May):
- PIEs: The rules apply to financial years beginning on January 1, 2026 with labeled reports to be published in 2027.
- NO PIEs: The rules apply to financial years beginning January 1, 2027 with labeled reports to be published in 2028.
🟣 If the RTS Publication is after June 30, 2026 (e.g., in September):
- PIEs: The rules apply to financial years beginning January 1, 2027 with labeled reports to be published in 2028.
- NO PIEs: The rules apply to financial years beginning January 1, 2028 with labeled reports to be published in 2029.
And it would be done in progressive phases of two years for the labeling of different contents:
🟣 Phase-1 (first two years):
- ESRS 2, including IRO-1 of all subjects.
- Climate change (E1), with full granularity.
- EU data (All ESRS 2, appendix B).
- Numerical values in all remaining topics.
- Level 1 text blocks for each requirement (DR).
- Full Article 8 disclosures (without phase-in).
🟣 Phase-2 (2 years later):
- Semi-narrative and Level 2 narrative in all remaining topics.
🟣 Phase-3 (another 2 years later):
- Labeling of Level 3 narratives (text blocks).
- Entity-specific disclosures.
- Modifications to financial labeling:
- Simplification of labels: One per note in the financial statements.
- Detailed labeling of numerical values in the notes.
Conclusion
iXBRL is not only a technical tool, but a strategic enabler for the transition to a more sustainable and transparent economy. In an environment where stakeholder expectations are constantly evolving, its implementation in ESRS will mark a before and after in the way companies communicate their sustainability impacts and risks. Its adoption is not only a regulatory obligation, but an opportunity for companies to lead with clear and accessible data in a global market.
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