ESMA initiates a consultation on the digital tagging of ESRS statements
ESMA initiates a consultation on the digital tagging of ESRS statements
The European Securities and Markets Authority (ESMA) has launched a public consultation to amend the European Single Electronic Format (ESEF) Regulatory Technical Standards (RTS) to digitize European Sustainability Reporting Standards (ESRS) and Article 8 disclosures in XBRL format starting from financial year 2026 or financial year 2027.
This proposal includes a draft XBRL taxonomy based on EFRAG's digital taxonomy reflecting ESRS Set 1.
The consultation includes a draft XBRL taxonomy that combines the ESRS, Article 8, and IFRS XBRL Taxonomies, along with a detailed document outlining the draft amendments to the ESEF RTS and several survey questions. ESMA proposes that large Public Interest Entities (PIEs) or PIEs that are parent undertakings of a large group (including third-country issuers), begin digitizing their disclosures using Inline XBRL for the financial year 2026 or 2027. This means that these digital sustainability reports will be publicly available in 2027 or 2028, depending on the European Commission's adoption of the amended ESEF RTS. For large non-PIEs or non-PIEs that are parent undertakings of a large group (including third-country issuers), ESMA suggests an additional year before starting the digitization process. Furthermore, a phased approach is proposed, gradually extending the mandatory digital tagging scope based on different ESRS disclosures over two additional phases, with full digitization of ESRS Set 1 statements expected by 2031 or 2032.
The consultation is open until 31 March 2025.
More information can be accessed in the press release.
This proposal includes a draft XBRL taxonomy based on EFRAG's digital taxonomy reflecting ESRS Set 1.
The consultation includes a draft XBRL taxonomy that combines the ESRS, Article 8, and IFRS XBRL Taxonomies, along with a detailed document outlining the draft amendments to the ESEF RTS and several survey questions. ESMA proposes that large Public Interest Entities (PIEs) or PIEs that are parent undertakings of a large group (including third-country issuers), begin digitizing their disclosures using Inline XBRL for the financial year 2026 or 2027. This means that these digital sustainability reports will be publicly available in 2027 or 2028, depending on the European Commission's adoption of the amended ESEF RTS. For large non-PIEs or non-PIEs that are parent undertakings of a large group (including third-country issuers), ESMA suggests an additional year before starting the digitization process. Furthermore, a phased approach is proposed, gradually extending the mandatory digital tagging scope based on different ESRS disclosures over two additional phases, with full digitization of ESRS Set 1 statements expected by 2031 or 2032.
The consultation is open until 31 March 2025.
More information can be accessed in the press release.