XBRL News about sustainability reporting, proxy votes and value chain reengineering
Here are the three most relevant developments in the world of structured reporting we became aware of in the course of last week.
Jason is currently developing the only known use case of blockchain for the auditing industry with AuditChain, and bringing some much needed change with real time assurance and financial reporting. If Satoshi Nakamoto will go down in history as the inventor of the world’s first peer to peer payment system without central intermediary with Bitcoin, Jason will be remembered for being the pioneer of decentralized continuous audit.
Listen to this at your own peril if you’re currently engaged in state-of-the-art financial reporting. Auditchain provides an (the?) infrastructure for reengineering the full reporting value chain, in which XBRL plays a crucial role. Note that the author has a commercial interest in this.
XBRL looks set to be deployed for reporting on funds stewardship in the US, facilitating access to information on how asset managers are voting at AGMs. The US Securities and Exchange Commission (SEC) has proposed rule changes to enhance the information disclosed by investment funds about their proxy votes, in the form of amendments to its Form N-PX. Crucially, in addition to improvements to the content of disclosures, it would require filers to use “an XML structured data language.”
Proxy voting behaviour by asset managers is an important piece of information in the assessment of their engagement activity, especially when monitoring for greenwashing. This information is currently accessible through tedious manual labour only. This proposal will hopefully change that.
Following a collaborative effort in the review of reporting practices and gathering stakeholder feedback, the PTF-RNFRO, whose focus was on the reporting on sustainability risks and opportunities and the linkage to the business model- a key element of a proposal for a Corporate Sustainability Reporting Directive (CSRD)- has published its findings in a Main Report and Supplementary Document with good reporting practices.
Although rife with Eurospeak acronyms, these insights indeed provide helpful pointers to current best practice in business model and sustainability reporting, which – admittedly – is a dynamic space.
Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.
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