A fully digital taxonomy that enables computer-readable report formats that allow switching among various reporting frameworks and regulatory requirements is what the Global Reporting Initiative (GRI) aims to provide in its new sustainability reporting taxonomy, a news release said.
Digital tools are increasingly important in addressing an organisation’s need to disclose detailed information on sustainability impacts, the release said. The GRI’s taxonomy intends to make sustainability data more accessible through less costly practices.
“The GRI sustainability taxonomy will be based on XBRL … [which] means that entities will be able to apply digital tags to reported information using the GRI standards,” the release said. “Sustainability data can then be quickly and easily utilised for research and comparison with existing sustainability information.”
According to the release, the taxonomy will also provide benefits in the following areas:
- Automatic validation: The new taxonomy ensures sustainability reports are submitted in “accordance with” or “with reference to” the GRI standards.
- Opportunities for interoperability: The tool facilitates using the same data across various reporting standards in the future.
- Direct filing with GRI: Organisations can submit XBRL reports via the GRI portal or using a dedicated webform. For post-validation, an approver must authorise the filings.
- Integration and testing for tool developers: It allows GRI software partners to integrate the taxonomy into reporting tools, with access to a “sandbox” environment for testing.
The comment period is open until 11 August, the release said. Sustainability experts and XBRL specialists are encouraged to respond. Stakeholders should respond under the sustainability or XBRL form depending on their background.
IASB to make ‘targeted refinements’ to management commentary proposals
The IASB decided to move forward with finalising the revision of IFRS Practice Statement 1, Management Commentary, a news release said, by making “targeted refinements” to the proposals set out in its 2021 exposure draft.
Management commentary sometimes “provides the home” for a company’s sustainability disclosures, the release said. The decision to improve the existing practice statement responds to demand for better information about the factors that have affected, or could affect, a company’s ability to create value and generate cash flows, including in the long term.
“Supporting connectivity between a company’s management commentary and both its financial statements and sustainability disclosures is a key aim of the project,” the release said. “Finalising the project would also provide a stepping stone towards greater integration in reporting in the future.”
In refining its proposals, the IASB will collaborate with the International Sustainability Standards Board and consult with the Integrated Reporting and Connectivity Council, the release said. The board expects to issue the revised statement in the first half of 2025.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.