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SASB Standards XBRL Taxonomy Released for ESG Reporting
On September 27, 2021, the Value Reporting Foundation announced the release of the Sustainability Accounting Standards Board (SASB) Standards eXtensible Business Reporting Language (XBRL) Taxonomy for public use. Organizations can now use the SASB Standards XBRL Taxonomy to communicate their environmental, social, and governance (ESG) information in a structured, machine-readable data format. ESG information that follows the SASB Standards can be digitally tagged within ESG reports, regulatory filings, e.g., Forms 10-K or 10-Q and proxy statements, ESG indexes and data tables, and other reporting formats. The SASB Standards are commonly used, with nearly 1,300 organizations using these standards for ESG reporting.
Machine-readable text is critical for ESG data aggregators and ESG rating providers to use company ESG information. The use of the new SASB Standards XBRL Taxonomy will make it easier for ESG rating providers to collect and analyze the publicly available ESG data for their ESG ratings. Equity investors, lenders, insurers, donors, grantors, customers, and others can then use these aggregated data and ESG ratings when making decisions.
The SASB Standards XBRL Taxonomy is compatible with base taxonomies for financial reporting, so existing processes can be used for reporting this information. The SASB Standards XBRL Taxonomy and a preparer’s guide can be downloaded from the Value Reporting Foundation’s website.
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BKD’s ESG Advisory Services is available to assist you in implementing the SASB Standards XBRL Taxonomy and other ESG reporting best practices so you can get full recognition for your ESG activities. For more information on how we can help, reach out to your BKD Trusted Advisor™ or submit the Contact Us form below.