XBRL (eXtensible Business Reporting Language) is, in short, a standardized way of sharing business information. It is free and helps to create up-to-date financial and sustainability reporting. It is already being used by over 20 million companies, 135 regulators and 70 governments worldwide.
In CDP, we believe that as non-financial reporting becomes part of the mainstream there is a need to increase efficiency, save costs and standardized output. Thankfully, technology is on hand to help solve these challenges.
We know that there is no one-size-fits-all approach to climate reporting, with all companies having their own environmental challenges, contexts and data collection issues. After exploring a number of digital standards we have continued to develop our work in XBRL because we believe it:
Financial reports are crucial for a full understanding of a company’s situation and moving to electronic reporting will facilitate analysis, comparability and accessibility of issuers’ financial statements.Steven Maijoor, ESMA Chair