Integrated XBRL ESG Reporting Solutions

Streamline Financial Reporting with Integrated iXBRL Solution: Simplifying Compliance and Enhancing Data Analysis

EcoActive ESG provides a comprehensive solution that incorporates an integrated iXBRL (Inline Extensible Business Reporting Language) capability. This powerful feature enables accounting and reporting software to generate financial reports that comply with iXBRL standards.

iXBRL is a format that utilizes XML (eXtensible Markup Language) to tag financial and business data, making it easier to analyze and compare financial information across different companies and industries. With our integrated iXBRL capability, the process of generating financial reports in iXBRL format is automated, reducing the need for manual tagging and minimizing the risk of errors.

This capability proves particularly valuable for companies that must meet regulatory requirements for financial reporting, such as tax filings, financial statements, and annual reports. By leveraging our integrated iXBRL capability, companies can ensure compliance with these regulations while streamlining the reporting process.

Furthermore, the integration of iXBRL’s capability enhances accessibility and comprehension of financial reports for investors and other stakeholders. The standardized format and tagged data enable easier analysis and interpretation of financial information, fostering transparency and accountability.

Manage ESG Reporting

The process involves identifying the relevant ESG material issues, reporting on them using a chosen framework, collecting data from various sources, and creating an ESG report.

Tag And Generate ESG XBRL Filings

An appropriate ESG taxonomy, such as SASB or TCFD, is selected based on the mandate, and this taxonomy is used to tag the ESG report data to generate precise XBRL filings.

Review Your XBRL

To ensure accuracy and completeness of the XBRL filings, it is important to review that each fact or data point in the report is correctly tagged, correct context, scaling and other attributes are assigned.

File With Regulator

It is important to validate the reviewed XBRL package against the business rules set by the regulator. Once the package has been validated, it can then be submitted to the appropriate regulator, such as the SEC or ESEF.

By choosing EcoActive ESG with its integrated iXBRL capability, companies can benefit from streamlined financial reporting processes, improved accuracy, and enhanced transparency. We are committed to empowering your financial reporting efforts, ensuring compliance with regulatory requirements, and facilitating effective communication with stakeholders.

Experience the efficiency and transparency of financial reporting through integrated iXBRL capability by partnering with EcoActive ESG today.

ESG Reporting with XBRL

What is ESG Reporting?

Environmental, Social, and Governance (ESG) reporting has become a cornerstone of modern corporate accountability. Companies across the globe are now being held to higher standards when it comes to sustainability and their social impact. Investors, consumers, regulators, and other stakeholders demand greater transparency regarding how businesses manage ESG risks and opportunities.

ESG reporting includes disclosures related to a company’s environmental footprint, social impact, governance practices, and sustainability efforts. These disclosures are typically shared through annual reports, sustainability reports, or regulatory filings. As global awareness of climate change, diversity, ethical governance, and social responsibility increases, governments and regulatory bodies, such as the European Union (EU), have implemented rigorous reporting frameworks to ensure that companies remain accountable.

Why Is ESG Reporting Important?

Investor Demand

ESG factors have become an integral part of investment decision-making. Investors are increasingly prioritizing companies that demonstrate strong sustainability practices, ethical governance, and social responsibility. Companies with robust ESG strategies are seen as less risky and more aligned with the long-term goals of responsible investing.

Regulatory Pressure

Governments around the world, particularly in the EU, have introduced legislation like the Corporate Sustainability Reporting Directive (CSRD) to ensure that companies disclose non-financial information in a standardized manner. ESG disclosures are not just a matter of corporate reputation—they are becoming a legal requirement. Non-compliance can result in penalties and a loss of investor trust.

Stakeholder Engagement

Transparent ESG reporting helps businesses engage meaningfully with a diverse range of stakeholders, including customers, employees, communities, and regulators. Clear ESG communication builds trust and fosters long-term relationships.

Risk Management

ESG reporting helps companies identify and mitigate risks related to climate change, human rights, and governance issues. Understanding these risks allows businesses to better navigate regulatory challenges, supply chain disruptions, and reputational damage.

What is XBRL and Why Is It Important for ESG Reporting?

XBRL (eXtensible Business Reporting Language) is a global standard for digital financial and non-financial reporting that allows businesses to share data in a machine-readable, standardized format. XBRL was initially developed for financial reporting, but with the increasing importance of non-financial (ESG) information, it has become a critical tool for ESG reporting.

The use of XBRL in ESG reporting offers several key advantages:

Machine-Readable and Structured Data

XBRL allows ESG data to be tagged with specific identifiers (or “tags”) that describe the content in a way that is machine-readable. This ensures that stakeholders—such as investors, regulators, and the public—can easily analyze, compare, and use the data.

Standardized Reporting

XBRL ensures that ESG data is reported in a consistent format. This is especially important in the context of evolving regulatory standards like the European Sustainability Reporting Standards (ESRS), which require companies to disclose a wide range of ESG data. With XBRL, ESG disclosures are comparable across companies and industries, which aids investors and regulators in their analysis.

Enhanced Transparency and Accountability

XBRL makes ESG disclosures transparent and verifiable. It allows companies to ensure the accuracy and consistency of their reported data, building trust with stakeholders and helping mitigate risks of greenwashing (misleading claims about environmental impact).

Regulatory Compliance

Governments and regulatory bodies, such as the EU’s European Securities and Markets Authority (ESMA), have increasingly mandated XBRL for corporate reporting, including for ESG disclosures. By using XBRL, companies ensure they remain compliant with these regulations, including those under the CSRD and ESEF (European Single Electronic Format) standards.

The Role of XBRL in ESG Reporting: CSRD and ESRS Compliance

The Corporate Sustainability Reporting Directive (CSRD), which came into effect in 2024, significantly expands ESG disclosure requirements for large companies and public-interest entities. The CSRD builds on the previous Non-Financial Reporting Directive (NFRD), imposing stricter reporting obligations and requiring the use of standardized formats for reporting, including XBRL.

Key CSRD Requirements:

Broad Scope

The CSRD applies to large EU companies (with over 250 employees or €40 million in revenue) and listed companies, as well as non-EU companies with substantial business in the EU. This expands the number of companies required to report on ESG metrics significantly.

Mandatory XBRL Compliance

The European Sustainability Reporting Standards (ESRS), which companies must follow under the CSRD, require reporting of a wide range of ESG factors, from carbon emissions to diversity and inclusion data. These reports must be submitted using XBRL to ensure consistency, accuracy, and comparability across the EU.

Auditing and Assurance

XBRL is designed to support the auditing and verification of ESG data, ensuring that companies' sustainability reports are credible and reliable. Under the CSRD, companies will need to have their ESG data independently audited before it can be submitted to regulators.

Integration with ESEF

XBRL-tagged reports are integrated into the European Single Electronic Format (ESEF), which is the standard format for EU-listed companies. This format ensures that financial and non-financial data is filed in a way that is accessible and usable by investors and regulatory authorities.

Which XBRL taxonomies are available for ESG Reporting?

ESRS XBRL Taxonomy (European Sustainability Reporting Standards)

Under the CSRD, the European Sustainability Reporting Standards (ESRS) are being implemented. The ESRS XBRL Taxonomy helps companies report on their ESG performance, covering environmental, social, and governance issues. This taxonomy supports standardized disclosures of sustainability-related information, ensuring consistency and transparency in reporting across EU member states.

EU Taxonomy Article 8 (EU Taxonomy Regulation)

Developed by the European Union, the EU Taxonomy provides a classification system for environmentally sustainable economic activities. The taxonomy helps companies report on how their activities align with environmental sustainability goals, particularly under the CSRD. The associated Article 8 XBRL Taxonomy is used to report on the extent to which companies meet the EU’s environmental criteria for sustainability.

SASB Standards XBRL Taxonomy (Sustainability Accounting Standards Board)

The SASB Standards offer industry-specific ESG disclosure guidelines, and the SASB XBRL Taxonomy allows companies to report against these standards. It is widely used in the U.S. and focuses on financially material ESG factors that can impact a company’s performance in various
industries.

GRI XBRL Taxonomy (Global Reporting Initiative)

The GRI Standards are the most widely used global standards for sustainability reporting. The GRI XBRL Taxonomy helps organizations disclose their sustainability performance across a wide range of ESG factors, from environmental impacts to social and governance practices, in a structured, standardized format that can be easily analyzed.

IFRS Foundation’s Sustainability Standards XBRL Taxonomy (ISSB)

The ISSB (International Sustainability Standards Board) Taxonomy is part of the IFRS Foundation’s effort to create a globally consistent and comparable framework for sustainability disclosures. The ISSB, launched in 2021, aims to standardize the reporting of environmental, social, and governance (ESG) factors, specifically focusing on climate-related and broader sustainability-related financial disclosures.

How Our ESG and XBRL Services Can Help Your Business

At EcoActive, we specialize in providing end-to-end solutions for ESG reporting and XBRL compliance. Our expert team will guide you through the entire process of preparing and submitting your ESG reports, ensuring that you meet all regulatory requirements while enhancing your sustainability performance.

Our ESG and XBRL Services Include:

ESG Reporting Strategy and Framework Development

We work closely with your team to develop a comprehensive ESG reporting strategy that aligns with the latest CSRD and ESRS requirements. We help you identify the key sustainability metrics to report, integrate ESG factors into your business strategy, and create a tailored framework for ongoing reporting.

XBRL Tagging and Data Structuring

We use advanced XBRL technology to convert your ESG data into a machine-readable format. This involves mapping each data point to the appropriate XBRL tags based on the European Sustainability Reporting Standards (ESRS). Our solution ensures that your ESG disclosures arestructured correctly and ready for regulatory filing.

Regulatory Compliance and Standards Alignment

With evolving ESG regulations, we ensure that your ESG reports align with the latest CSRD, ESRS, and ESEF requirements. Our services help you navigate the complex regulatory landscape, ensuring that your company remains fully compliant and ready for audits.

Data Auditing and Assurance

We provide full support for ESG data auditing, ensuring that your XBRL reports are accurate, verifiable, and in compliance with the required standards. We collaborate with third-party auditors to give your stakeholders confidence in the credibility of your ESG data.

Submission and Filing Support

We handle the submission of your XBRL-tagged ESG reports to regulatory platforms, such as ESMA and national authorities. Our team ensures that your reports are filed on time and are fully compliant with all applicable regulations.

Ongoing ESG Reporting and Updates

ESG reporting is an ongoing process. We help you continuously monitor your sustainability performance, update your ESG disclosures, and prepare for future regulatory changes. Our team stays abreast of any updates to ESG reporting regulations, ensuring that your business remains compliant.

Why Choose EcoActive for ESG and XBRL Reporting?

Expert Knowledge of ESG Regulations
Our team is highly experienced in CSRD, ESRS, and ESEF requirements, ensuring that your ESG reports meet the latest EU regulatory standards.
Advanced XBRL Technology
We leverage cutting-edge XBRL software to automate the tagging and structuring of your ESG data, ensuring accuracy and efficiency.
Comprehensive Support
From strategy development and data collection to reporting and submission, we provide end-to-end support for your ESG and XBRL reporting needs.
Transparency and Trust
With XBRL, we ensure that your ESG reports are transparent, comparable, and verifiable, enhancing trust with investors, regulators, and other stakeholders.
Risk Mitigation
By ensuring your ESG data is accurate and compliant with EU regulations, we help mitigate the risks of penalties, reputational damage, and legal non-compliance.

Get Started with ESG and XBRL Reporting Today

Ensure your business stays ahead of the curve by partnering with EcoActive for comprehensive ESG reporting and XBRL compliance services. Our expert team is here to guide you through every step of the process, from data collection and strategy development to XBRL tagging and regulatory filing.

info@ecoactivetech.com
+1 (703) 338-8896