ESRS XBRL tagging

Requirements

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CSRD Digital Tagging Requirement
CSRD requires sustainability statements to be digitally tagged. A tag is a digital signifier of information, allowing the report to be machine-readable and specifying every data point with a unique signifier. EFRAG has released the tags to be used when tagging the reports.

• There are 13,480 unique tags in the released taxonomy.
• A tag is typically applied to multiple data points. On average, a tag appears 4.2 times in a report.
• If all tags are used, a report will receive 57,096 digital tags.

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Example Tags
All data points on the transition plan need the following tag:

• esrs:DisclosureOfTransitionPlanForClimateChangeMitigationExplanatory

Information on decarbonation efforts requires these tags:

• esrs:DisclosureOfTransitionPlanForClimateChangeMitigationExplanatory
• esrs:ExplanationOfDecarbonisationLeversIdentifiedAndKeyActionsPlannedExplanatory

Other examples of tags include:

• esrs:ThirdpartyStandardOfConductUsedInPolicyEncouragesStepwiseApproachAndContinuousImprovementInStandardAndItsApplicationOfBetterManagementPracticesAndRequiresEstablishmentOfMeaningfulTargetsAndSpecificMilestonesToIndicateProgressAgainstPrinciplesAndCriteriaOverTime
• esrs:DisclosureOfCurrentFinancialEffectsOfMaterialRisksAndOpportunitiesOnFinancialPositionFinancialPerformanceAndCashFlowsAndMaterialRisksAndOpportunitiesForWhichThereIsSignificantRiskOfMaterialAdjustmentWithinNextAnnualReportingPeriodToCarryingAmountsOfAssetsAndLiabilitiesReportedInRelatedFinancialStatementsExplanatory
• esrs:DisclosureOfByWhomAndHowFrequentlyAdministrativeManagementAndSupervisoryBodiesAreInformedAboutMaterialImpactsRisksAndOpportunitiesImplementationOfDueDiligenceAndResultsAndEffectivenessOfPoliciesActionsMetricsAndTargetsAdoptedToAddressThemExplanatory

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Tagging Software Requirement
Reporting entities must acquire software for digital tagging. Authorities do not provide this software—it must be purchased.

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Types of Tagging Software

1. Manual Tagging
   • Tags are added manually, one by one, after the report is finished.
   • Requires 500 hours of work.
2. Automatic Tagging
   • Tags are applied automatically by a tagging tool in 5 seconds.
   • Automatic tagging is possible only if the entire report is created in software that includes all disclosure requirements from the ESRS standard and can dynamically adapt to the DMA result.

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Summary

• Digital tagging is required by law.
• Two options for tagging:
  • Manual tagging: Takes 500 hours.
  • Automatic tagging: Takes 5 seconds.

Which would you prefer?

Automatic tagging is feasible only if the report is created in software supporting automatic tagging and model documents covering all ESRS disclosure requirements.

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C-Tag Features

• Offers automatic tagging and model documents covering all ESRS disclosure requirements.
• Includes integrated functions for:
  • Data gathering
  • Project management
  • ESG data management
  • Auditing
  • Report creation

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Relevant Links

ESRS XBRL tags released by EFRAG

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