The European Financial Reporting Advisory Group (EFRAG) called the VSME introduced as a simplified sustainability reporting standard for small and medium-sized companies. There is no standard downloadable format to track your VSME reporting in; so Excel is totally fine. But because you sometimes need to exchange data with customers, financiers and other stakeholders, it is inconvenient if everyone does it in a different way. That is why EFRAG developed a free tool that automatically converts every Excel report to XBRL: a computer language for structured data exchange;
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XBRL stands for eXtensible Business Reporting Language. This means that your reporting data can be read not only by humans but also by computer systems. In practice, this means that your client can load your sustainability data directly into their own system, even if you have both formatted it differently in Excel. The XBRL format thus prevents manual retyping of figures, unnecessary errors and it gives you a professional image towards major clients. Think of it as a data-driven accounting language, allowing software to immediately know:
What the number is (e.g. CO₂ emissions)
which period is involved
in what unit it is (e.g. tonnes, euro)
which organisation it belongs
Large companies that need to create their own CSRD reports collect data from hundreds of suppliers. If everyone uses a different Excel format, it costs their procurement departments of who have to submit or process data for CSRD reports (also called procurement teams) unnecessary time to process everything.
With XBRL, procurement teams can:
Automatically read your data into their systems
Faster to compile their own CSRD reports
Avoiding errors due to manual typing
Easier comparisons between suppliers
The tool EFRAG developed to convert your Excel VSME report to an XBRL does not give you any extra work. You don't have to learn anything new and just continue working in Excel as you are used to. So:
Fill out your VSME report using the official EFRAG Excel template
Upload your completed Excel file to the EFRAG converter
Download your report in XBRL
Deliver both versions to your client: Excel for people, XBRL for computers
When you convert your data into XBRL:
Meet the most professional standards
Customers can incorporate your data directly into their systems and align with what big companies expect from you
Distinginguish yourself from competitors who provide data only in Excel
Prepare for further digitisation
Exude professionalism towards new clients
Using XBRL is free of charge. The EFRAG tool is public and available to everyone. So there is no need to buy licences or take out subscriptions.
The bottom line: with one extra step that doesn't require any changes in the way you work, you make it even easier for your customers to use your data. And without extra costs or complicated software;