The European Financial Reporting Advisory Group (hereinafter referred to as “EFRAG”) has launched two public consultations on the draft XBRL Taxonomy for ESRS Set 1 and the draft XBRL Taxonomy for Article 8 Disclosures. This initiative stems from the European Commission's assignment to EFRAG to create the digital taxonomy for the European Sustainability Reporting Standards (hereinafter referred to as “ESRS”).
ESRS Set 1 Draft XBRL Taxonomy facilitates the digital labelling of ESRS statements by providing XBRL elements for each data point and dimensional disaggregation specified in the disclosure requirements. Once completed, this taxonomy will serve as the foundation for the European Securities and Market Authority (hereinafter referred to as “ESMA”) to develop Regulatory Technical Standards (hereinafter referred to as “RTS”) for tagging ESRS sustainability statements.
In addition to the draft XBRL Taxonomy for ESRS Set 1 taxonomy, EFRAG is also developing the Draft XBRL Taxonomy for the Taxonomy Regulation Article 8 Disclosures, which are both subject to public consultation, with the deadline for responses set for April 8, 2024.
The consultations aim to gather input from stakeholders, including issuers, analysts, data providers, investors, asset managers, and financial institutions. The feedback received will be taken into consideration by the EFRAG in the finalisation process of the taxonomies, and adjustments will be incorporated as needed.
About the Author
This article has been authored by Dr Chanelle Meli, Regulated Industries & Compliance Advisor. Contact us here or on [email protected] for more information.
