← Back to all briefings
Data Strategy 5 min read Published Updated Credibility 40/100

CSRD digital reporting and XBRL tagging update

Overview of the Corporate Sustainability Reporting Directive's digital reporting requirements and the XBRL taxonomy, including key dates, obligations, implementation challenges and Zeph Tech's recommendations.

Zeph Tech Research Lead

Research lead, Zeph Tech

Timeline plotting source publication cadence sized by credibility.
3 publication timestamps supporting this briefing. Source data (JSON)

Context and recent developments

The Corporate Sustainability Reporting Directive (CSRD) replaces and extends the Non‑Financial Reporting Directive. It requires large EU companies and listed firms to publish regular reports on social and environmental impacts and associated risks, enabling investors and stakeholders to assess sustainability performance. According to the European Commission’s corporate sustainability reporting portal, the first companies subject to the CSRD must apply the new rules for the 2024 financial year, with reports published in 2025. Companies subject to the CSRD have to report according to the European Sustainability Reporting Standards (ESRS), which are developed by EFRAG.

In 2024–25 the Commission asked the European Financial Reporting Advisory Group (EFRAG) to develop an XBRL (eXtensible Business Reporting Language) taxonomy to standardise how companies report under the CSRD. EFRAG has published a final XBRL taxonomy that allows organisations to digitally tag each data point, making reports comparable, standardised and machine‑readable. Digital tagging ensures that sustainability information can be more easily analysed by regulators, investors and other stakeholders, addressing the current lack of comparability in ESG reporting. The XBRL standard has been widely adopted in financial reporting and is now being extended to sustainability disclosures, creating a unified framework for corporate transparency. The Key ESG whitepaper explains that digital tagging using the XBRL taxonomy is not currently mandatory for CSRD disclosures but is expected to become mandatory in 2025, depending on how EU Member States incorporate XBRL into their national legislation. It notes that by 2027 all companies will be required to file their CSRD reports on the European Single Access Point (ESAP), and XBRL tagging will be required for those filings.

Rights and obligations

The CSRD significantly expands the scope of sustainability reporting to cover approximately 50 000 companies across the EU, requiring disclosures on environmental, social, governance and human rights topics. Companies subject to the CSRD must report according to ESRS and provide detailed information on their sustainability strategy, policies, performance metrics and due‑diligence processes. The introduction of the XBRL taxonomy creates a framework for digital tagging: each of the more than 1 200 ESRS data points is mapped to a unique label that identifies the reporting period, measurement unit and description. When a report is digitally tagged using XBRL, organisations must produce both a human‑readable PDF and a machine‑readable inline XBRL file that regulators and analysts can process. Although digital tagging is voluntary until national implementation rules come into force, the Key ESG article recommends that all companies start using the XBRL taxonomy immediately because it will soon become a mandatory requirement and ensures standardised, accurate and comparable reports. Early adoption provides organisations with time to refine their processes, test their systems, and build internal expertise before the mandate takes effect.

Implementation challenges and future amendments

Introducing digital tagging is not a simple matter of adding labels. Many organisations have disparate ESG data sources, unstructured reporting formats and legacy processes. Converting sustainability information into an XBRL‑compliant structure requires mapping internal data fields to ESRS taxonomy codes, updating reporting systems and embedding new governance controls. This transformation often reveals data quality issues, gaps in documentation, and inconsistencies in measurement methodologies that must be addressed before digital tagging can be successfully implemented. National transposition of the CSRD and XBRL mandates may also vary, leading to different timelines and possible discrepancies across jurisdictions. Additionally, the EU’s proposal for an Omnibus legislation (also known as the “quick fix”) aims to reduce the reporting burden by simplifying some ESRS requirements and providing phased deadlines for SMEs and voluntary reporters. While the Omnibus proposals are not yet adopted, they illustrate that reporting requirements may evolve. Data leaders must therefore design flexible data‑architecture and tagging processes that can accommodate updated standards and future regulatory adjustments. The technical infrastructure must be scalable and adaptable to support both current requirements and anticipated changes in reporting scope and granularity.

Implications and recommended actions

For data‑strategy and compliance teams, the XBRL digital tagging mandate is both a challenge and an opportunity. It will require early investment in data architecture: consolidating ESG data sources, ensuring quality and consistency, implementing XBRL tagging tools, and training teams on the ESRS taxonomy. This includes mapping data collection workflows to ESRS disclosure requirements, establishing clear data ownership and accountability structures, and implementing validation controls to ensure data accuracy and completeness. Because the mandatory application of digital tagging may come as early as 2025, organisations should undertake readiness assessments now. This includes evaluating whether their existing sustainability reporting processes capture all ESRS data points, establishing a governance framework that assigns responsibility for each element, and selecting software that can generate inline XBRL files. Companies should monitor national legislation to determine the exact timeline and ensure readiness for mandatory ESAP filings in 2027. Establishing robust processes early will also support transparency, reduce future compliance costs and demonstrate commitment to sustainability.

Organisations should develop a phased implementation roadmap that includes pilot testing, validation procedures, and contingency planning. Key milestones should include data inventory completion, taxonomy mapping, system integration, staff training, and dry runs of the full reporting cycle. Collaboration with external advisors, software vendors, and peer organisations can accelerate learning and reduce implementation risks. Boards and senior management should be regularly briefed on progress, resource needs, and emerging challenges to ensure adequate support and oversight.

Zeph Tech analysis

From a data‑strategy perspective, the impending XBRL mandate signals a shift toward structured, machine‑readable sustainability reporting. For practitioners building secure and modern data stacks, this means prioritising interoperability and metadata management. Integrating XBRL tagging into reporting workflows aligns with the core Zeph Tech pillars of data strategy and compliance. Early adoption not only reduces regulatory risk but also enhances the ability to extract insights from ESG data, compare performance across peers and embed sustainability metrics into broader enterprise analytics. As regulators push toward digital reporting and unified access points, organisations that invest now will be better positioned to navigate future regulatory cycles and leverage sustainability information as a strategic asset. The move to digital tagging also creates opportunities for automation, real-time monitoring, and enhanced stakeholder engagement through more accessible and actionable sustainability data.

Timeline plotting source publication cadence sized by credibility.
3 publication timestamps supporting this briefing. Source data (JSON)
Horizontal bar chart of credibility scores per cited source.
Credibility scores for every source cited in this briefing. Source data (JSON)

Related briefings

Curated signals from the same pillar or overlapping topics.

Continue in the Data Strategy pillar

Return to the hub for curated research and deep-dive guides.

Visit pillar hub

Latest guides

Back to curated briefings

Comments

Community

We publish only high-quality, respectful contributions. Every submission is reviewed for clarity, sourcing, and safety before it appears here.

    Share your perspective

    Submissions showing "Awaiting moderation" are in review. Spam, low-effort posts, or unverifiable claims will be rejected. We verify submissions with the email you provide, and we never publish or sell that address.

    Verification

    Complete the CAPTCHA to submit.