Greenomy claims that this technology streamlines data discovery, access, and analysis by enabling corporate information to be in a computer-readable format. To ensure that no important information is lost during data treatment, XBRL intelligently tags report components including figures, narratives, and tables.

By enabling users to directly engage with tagged portions of a report, Inline XBRL (iXBRL), which builds upon XBRL, adds an interactive layer to reporting. With the help of this interactive feature, users may easily comprehend how certain disclosure standards relate to data while maintaining the original document's visual structure. In particular, iXBRL has revolutionized reports by making them navigable in addition to readable.

In the past, financial reporting has been handled well by XBRL, where significant statistics are tagged after the report is prepared. The Corporate Sustainability Reporting Directive (CSRD), on the other hand, has greatly broadened the scope and made it necessary to tag a wide variety of data items, such as each narrative, figure, and table column.

This wide scope is necessary for both ESRS and the EU Taxonomy, which makes handling large amounts of ESG data more difficult.

In August 2024, the European Securities and Markets Authority (ESMA) received the first XBRL taxonomy for ESRS and the Article 8 EU Taxonomy from the European Financial Reporting Advisory Group (EFRAG). The precise standards are currently being developed and will be formalized by ESMA through a Regulatory Technical Standard (RTS), even though mandatory iXBRL tagging will start for reports in 2025. To properly handle the expected complexity, it is recommended to prepare for these changes in advance.

Enhanced standardization throughout reporting, better comparability across industries and countries, and improved data quality through fewer human entry mistakes are just a few of the many advantages that XBRL provides. All of these elements work together to promote regulatory compliance and increase transparency.

However, there are several difficulties in implementing XBRL. The technical nature of XBRL implementation, high upfront expenditures, continuous taxonomy revisions, and the possibility of data overload that might exceed conventional processing capabilities can all provide challenges for organizations.

Instead of incorporating XBRL as an afterthought, Greenomy supports doing so from the beginning of the reporting process. Based on a Double Materiality Assessment, their methodology consists of initial scoping and gap analysis, AI-enhanced data collecting, and iXBRL report creation. This proactive approach guarantees the quality and efficiency of reporting while streamlining compliance.

Greenomy's design and operating philosophy, which conforms to the most recent standards and practices in digital reporting, demonstrate their dedication to making XBRL compliance easier. In order to keep Greenomy's solutions at the forefront of XBRL technology and compliance requirements, Robin Dierckx, Head of Tech at Greenomy, actively participates in EFRAG's Digital Reporting Consultative Forum.