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CSRD: what is digital tagging?


Digital tagging is a method using electronic tags to organize non-financial information in accordance with the CSRD.
These tags enable automated data collection, limiting human error and making analysis simpler. They improve data accessibility, promote compliance and optimize comparability between companies.
What's more, they enhance transparency by tracking ESG performance over time.
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The term "digital tagging" refers to the use of electronic tags to facilitate the collection, management, and reporting of non-financial information required by the CSRD.

Digital tagging is a data structuring mechanism that makes this information more accessible, readable, and comparable. It is part of the CSRD's objective to improve the quality and comparability of companies' financial and non-financial reports.

des étiquettes représentant le tagging digital

Structuring data with digital tagging

Electronic tags, or "tags," are numeric codes or labels assigned to specific pieces of information in a report. These tags are used to identify, classify, and organize data in a standardized way, making it easier to collect, process, automate, and analyze.

Facilitate data collection

Digital tags enable the automation of data collection and promote consistency. Once they have been defined, they are applied consistently, reducing variations in collection.

Regulators, auditors, and stakeholders can more easily extract specific information from ESG reports, reducing the manual and time-consuming work of data collection.

Limit errors

Automating data collection using digital tags reduces the risk of human error, as information is extracted systematically. This significantly improves the accuracy of information and reduces the time it takes to identify and correct errors.

By limiting irregularities, digital tagging helps increase the reliability of ESG reporting.

Simplify analysis

Numeric tags are used to semantically structure information in a report. This means that each piece of information is tagged with tags that indicate its meaning and relevance. Digital tagging makes it easier to navigate through the report. By consulting it, it is possible to go directly to the desired sections, which reduces the time it takes to find relevant information.

Digital tagging also makes it possible to link non-financial information to other company reports and data, facilitating an integrated overview of ESG performance.

As a result, electronically tagged data can be more easily analyzed and searched, allowing for a more accurate assessment of sustainability and CSR performance.

By structuring ESG data, digital tagging reduces errors, facilitates analysis and enhances transparency.

a glass bubble in front of trees representing CSRD transparency

Improving Data Accessibility with Digital Tagging

Improving the accessibility of data through digital tagging is a key element in the context of ESG disclosure promoted by the CSRD. Companies can explain how the data has been tagged and how it meets regulatory requirements.

Improve compliance

Digital tagging allows businesses to track compliance in real-time. They can use digital tools to check if all mandatory information has been correctly tagged and included in reports.

They assign numeric tags to specific pieces of information, allowing them to clearly indicate their meaning and making it easier to identify data relevant to compliance.

Maximizing comparability

By using digital tagging in a way that complies with ESG reporting standards, companies can make their data comparable with that of other companies. This makes it easier to compare performance and comply with industry standards. This is an essential element for stakeholders (clients, investors, etc.) and analysts who participate in the legislation.

Fostering transparency

Digital tags make it possible to track and evaluate a company's ESG performance more effectively over time, which is essential for analysis and decision-making in investment or risk management.

By using digital tagging, reports can also be made interactive. Users can click on tags to access detailed information on specific topics, improving their understanding of the data.

With solutions such as our carbon footprint calculation software, it is possible to integrate digital tagging into your working methods smoothly and efficiently. This allows companies to structure data, tag it consistently, and make it easier to retrieve. This is a critical process to ensure that GHG reporting complies with legal and regulatory requirements.

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