ESG and Sustainability Reporting
Manage and disclose ESG data easily with CSRD and ESRS-ready reports
ESG and Sustainability Reporting
Manage and disclose ESG data easily with CSRD and ESRS-ready reports
ESG Reporting Landscape
The European Union (EU) has implemented several regulations and initiatives related to Environmental, Social, and Governance (ESG) reporting to promote sustainable investment and corporate responsibility.
What is ESG Reporting?
ESG – an abbreviation for Environmental, Social and Governance are a set of criteria that help determine how “socially responsible” a company is. It provides a snapshot of business strategies and helps investment screening for all stakeholders, such as investors, employees, and society. ESG sustainability reporting helps investors steer clear of companies that might pose a higher financial risk due to their poor environmental, social, or governance practices.
DataTracks Sustainability – ESG Solution
A DataTracks Self-managed Software Solution
Challenges in ESG Reporting
Increased scope of ESG reporting
CSRD aims to increase the scope of ESG disclosure, leading to more data points being reported compared to existing NFRD regulation. Besides, new legislation will cover more filers, most of whom will have to collect and report ESG data for the first time.
Mandatory assurance
The ESG data must be audited and validated by auditors. A solution that offers total control is necessary for the auditor to review and approve tags with an immutable audit trail.
How DataTracks helps
Provide predefined templates
Users will have the option to choose industry-specific templates with placeholders to fill data points, add or modify the contents as needed, and create a base version seamlessly. These templates will come pre-tagged, minimizing the learning curve for XBRL. The roll-forward process will assist users in transferring tags from the base version to the high-design version, facilitating the overall workflow.
Connect with multiple data sources
Users can connect with various data sources including IoT devices, ESG management software and offline spreadsheets, create a consolidated data repository, and automatically populate data points within the report.
This process guarantees the presence of a single, authoritative source of truth for the data.
Review and approve through ORG
Auditors can review ESG data, exchange comments with filers, validate and approve through our state-of-the-art ORG application. Audit trail as part of ORG ensures all the comments and approvals are stored for future reference.
Easy upgrade from ESEF
The ESG report will be part of the annual report, already covered under the ESEF framework in XHTML format. With our expertise in multiple taxonomies, companies can seamlessly implement ESG on top of their existing ESEF taxonomy.
Remain Compliant with the Latest ESMA Requirements
Users will always access our latest set of taxonomy standards and validation rules.
DataTracks Rainbow
DataTracks Rainbow™, a renowned cloud-based compliance software certified by XBRL International, is designed to generate accurate, easy-to-create reports.
With the capability to support multiple input types, including rich-design PDFs and an embedded spreadsheet editor, Rainbow presents a single-source application platform that simplifies collaborations and content management. Leveraging AI/ML-driven tagging and a smart roll-forward feature, users can save up to 70% of time while ensuring consistency in XBRL tags.
The advanced Online Reviewer’s Guide streamlines the report-preparation process. Built with enhanced data security and a detailed audit trail, Rainbow ensures transparency and elevates user accountability. Ideal for corporate and fund reporting in XBRL/iXBRL formats across global regulatory frameworks.
Benefits
- Quick and easy creation of ESG data with predefined templates for each sector
- Seamless integration with multiple data sources
- Instant generation of iXBRL without any tagging effort
- Certified report creation software assuring filers of error-free outputs
- Ability to handle PDF files with rich designs
- Robust review and approval mechanism through our Online Reviewers Guide (ORG)
Online Reviewers Guide along with DataTracks Rainbow
DataTracks Rainbow software solution provides a sophisticated Online Reviewers Guide that enables issuers to communicate, preview iXBRL, carry out validation, examine tagging options, and even make comments or recommend modifications to the document. Additionally, the ORG (Online Reviewers Guide) promotes effective collaboration between internal and external users and auditors by permitting approval of XBRL tags, exchanging comments on both contents and XBRL tags, and comparing versions.
Features of the ORG (Online Reviewers Guide)
- Three-pane online iXBRL document preview.
- Exchange feedback on the document’s Tagged facts.
- Create several versions and carry forward comments and approvals instantly.
- Focus on reviewing changes alone with our version compare feature.
- Pre-validate before submission using a certified validation engine.
- Obtain a thorough audit trail of remarks and affirmations for later retrieval.
Featured Content
February 17, 2026
June 18, 2025
What is ESEF Reporting?
ESEF stands for European Single Electronic Format. It is a new reporting format for public companies in the European Union that requires them to publish their annual financial reports in a single, electronic format. ESEF is designed to improve the transparency and comparability of financial reporting across the EU.
Which companies need to comply with the ESEF tagging mandate?
ESEF applies to all public companies in the EU and UK that are listed on a regulated market. Consolidated IFRS accounts must be tagged using the ESEF taxonomy, but non-consolidated reports only need to be submitted in XHTML format without tagging.
What are the requirements for preparing an ESEF iXBRL report?
ESEF iXBRL reports must be prepared in XHTML format, with IFRS consolidated financial statements tagged using XBRL. The XBRL tags must be embedded in the XHTML document using Inline XBRL technology.
Who is affected by the ESEF reporting requirement?
The ESEF Reporting Requirements affect all issuers whose securities are admitted to trading on regulated markets within the European Union (EU), as well as all issuers who are required to prepare consolidated financial statements in accordance with International Financial Reporting Standards (IFRS), unless they are small and micro enterprises (SMEs) and their securities are not admitted to trading on a regulated market.
What does the ESEF regulation mean for auditors and supervisory boards?
The ESEF regulation focuses on publishing annual financial reports, with compliance extending beyond converting audited data into electronic format. The ESEF-RefE emphasizes third-party verification of accuracy. Although the EU Commission handles the audit, auditors and supervisory boards play a crucial role in confirming tag accuracy. At DataTracks, we assist auditors for precise ESEF reporting, enhancing overall financial disclosure quality.
