EFRAG doubles down on digital sustainability reporting
While much of the debate around the EU’s sustainability reporting overhaul has focused on reducing reporting burdens, a parallel story is unfolding around digitisation. Presenting at XBRL Europe’s Digital Reporting in Europe on 28 May, Richard Bössen outlined EFRAG’s growing focus on digital implementation, interoperability and machine-readable ESG data.
Central to that effort, EFRAG confirmed that updated ESRS XBRL taxonomies will be delivered once the final simplified standards are adopted by the European Commission, currently expected at the end of 2026. The organisation is also expanding its ESRS Knowledge Hub into a broader digital portal featuring interactive guidance, user tools and potentially AI-supported navigation.
A new XBRL taxonomy for the Voluntary Sustainability Reporting Standard for SMEs (VSME) has already been developed and translated into 11 languages. EFRAG has also released a free open-source Digital Template and XBRL Converter, allowing companies to convert simple spreadsheet-based disclosures into Inline XBRL.
EFRAG showcased its own 2025 sustainability report published in Inline XBRL as part of the presentation, signalling continued commitment to structured digital reporting despite the broader simplification agenda.
Interoperability remains a major focus. EFRAG said future work would continue aligning ESRS reporting with ISSB, SASB, GRI and the GHG Protocol, including efforts to improve digital taxonomy consistency and reduce duplicate reporting requirements.
Simplification does not mean stepping back from digital reporting. Instead, the EU is attempting to build a leaner sustainability reporting framework that remains rooted in structured, machine-readable data.
Find the presentation, when available, on the event website here.
