Why structured data is key to unlocking ESG insights
Marc Houllier, CTO of Corporatings, took the stage at Data Amplified to showcase how structured data, enabled by XBRL, can revolutionise sustainability reporting. Houllier highlighted the power of structured data under the European Sustainability Reporting Standards (ESRS), offering vivid examples of how it solves problems that neither AI nor humans can handle efficiently with unstructured disclosures.
Take the challenge of tracking progress on corporate sustainability targets. With unstructured reports, it’s almost impossible to determine whether a company is on track, requiring manual analysis and guesswork. But structured data can transform this. By tagging data points like targets and progress metrics, a system can instantly calculate which targets are overdue and even rank them by urgency – tasks that save significant time and effort.
Houllier also discussed the difficulty of analysing energy use or financial commitments to sustainability goals. Without tagged data, crucial figures like the share of renewable energy consumption or budget allocations can be buried in narrative text or misinterpreted. Structured data forces clarity, ensuring users access precise, comparable figures. Additionally, structured data enables comparisons across time and between peers, answering critical questions about companies’ transition plans and alignment with climate goals.
The message was clear: unstructured sustainability data creates costs for preparers and frustration for users, while structured data ensures accessibility and usability, delivering value for all stakeholders. XBRL, with its tagging capabilities, plays a pivotal role in ensuring corporate reporting delivers on its promise of transparency and decision-usefulness.
