Here is our pick of the 3 most important XBRL news stories this week. They’re not narrowly about XBRL, yet – but will be when the development comes to maturity.
1 Sustainability frameworks collaborate for comprehensive reporting
Long-time readers of this newsletter will know that one of the major issues holding sustainability reporting back has been the excessive proliferation of confusing and sometimes overlapping disclosure frameworks. As such, the recent news that five major disclosure frameworks are collaborating to progress towards comprehensive non-financial reporting was very welcome.
Within the context of the subsequent two news stories, this has to be seen as a defensive move of incumbent niche players against the onslaught of mainstream financial reporting actors.
2 Measuring stakeholder capitalism: Top global companies take action …
The World Economic Forum released a set of universal environmental, social and governance (ESG) metrics and disclosures to measure stakeholder capitalism that companies can report on regardless of their industry or region. Organized around the pillars of principles of governance, planet, people and prosperity, the identified metrics and disclosures align existing standards, enabling companies to collectively report non-financial disclosures.
Here’s a major “private” initiative to stake the ground for ESG reporting by the Big Four – no doubt a very welcome growth domain when they come under fire in their traditional space …
3 IFRS Foundation Trustees consult on global approach to sustainability reporting
The Consultation Paper sets out possible ways the Foundation might contribute to the development of global sustainability standards by broadening its current remit beyond the development of financial reporting standards and using its experience in international standard-setting, its well-established and supported standard-setting processes and its governance structure.
And this, of course, is the elephant in the room coming to claim his piece of the action. A development that is more than welcome!
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Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.
We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.
For context on XBRL please read this introduction to our XBRL Week in 2016 and read articles tagged XBRL in our archives.
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Source: https://dailyfintech.com/2020/10/01/xbrl-news-reshaping-esg-sustainability-reporting-now/
