Machine readability, XBRL and tagging
From the 2025 financial year onwards, large companies will be required to publish climate reports that can be read not only by people but also by machines. The aim of this new regulation is to make reporting more transparent and comparable.
PDF and HTML will become obsolete
The way companies publish their annual and sustainability reports is undergoing a major shift. In future, reports must be prepared in a format that computer programs can read directly. Only then can data be automatically analysed, compared and fed into other systems.
This change means that regulatory requirements for corporate reporting will become even stricter. Since 2023, large companies have already been obliged to disclose non-financial information. Since 2024, climate reports have also had to comply with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), leading to the stipulation that from the 2025 reporting year, these reports must be machine-readable. However, the Swiss Federal Council has stated that the use of the new XBRL (eXtensible Business Reporting Language) format will not yet be mandatory for the current reporting period.
Nevertheless, many companies have already started using XBRL for parts of their reporting. The reason has to do with the EU’s Omnibus Initiative, which aims to reduce administrative burdens on companies. On 14 April 2024, the EU finally approved the “stop-the-clock” directive, thereby delaying the start of certain sustainability reporting requirements and corporate due diligence obligations by two years. However: a delay is not a cancellation. The idea is for companies to use this time frame to develop their learning curve on the subject.
Machine readability, XBRL, tagging: what does it mean?
Machine readability means that computer programs can process data automatically, without human intervention. XBRL is a standardised data format for exchanging financial and corporate information. Unlike a machine-readable PDF, XBRL presents business data in a structured, standardised and comparable way using a system of tags. Every number and piece of information in a financial or sustainability report is assigned a unique label – a tag. These tags originate from a taxonomy, a classification system for electronic reporting, in which the tags for financial and sustainability reports are defined separately. This enables automated analysis, validation and exchange of financial and other kinds of annual reports across systems.
This is also what gives XBRL an advantage over a machine-readable PDF: although the latter allows the text to be copied, it lacks semantic structure. XBRL provides this through its predefined taxonomy. This means that the data is clearly labelled, ensuring that large amounts of information can be handled automatically.
Which file formats are machine-readable?
| File format | Machine-readable? | Comment |
| .txt, .csv, .xml, .json | Yes | Pure text formats – ideal for machines |
| .docx, .xlsx | Yes | Structured Microsoft formats |
| Maybe | If the text is embedded, yes. If it’s a scan, no | |
| .jpg, .png, .tiff | No | Image files – not machine-readable without OCR |
Recognising machine readability
To see if a document can be read by machines, try this simple test: if a text can be highlighted and copied with the mouse, it is machine-readable. If not, it’s probably a scanned image – readable to humans, but not to computers.
What are the benefits of the new regulation?
- Compliance: Companies using XBRL meet their legal obligation to provide machine-readable reports.
- Automated data analysis: Structured, machine-readable data can be efficiently processed, compared and integrated into other systems.
- Transparency and reuse: For open government data in particular, machine readability is essential for genuine reuse, i.e. automated further processing.
- Accessibility: XBRL improves accessibility, as screen readers can only recognise machine-readable text.
Advantages for companies
Companies can already benefit from reporting in XBRL format today. Automated processes reduce manual effort, avoid media disruptions and cut costs. Standardised tags and taxonomies improve data quality, making information more reliable. And greater transparency helps build trust among investors and other stakeholders.
Our support as a publishing partner
As a specialised publishing agency, we help companies produce reports that are strong in content, visually compelling and fully compliant with regulations. Our goal is to ensure that your reporting not only meets legal requirements, but also communicates effectively and builds trust:
- We advise and guide you through the entire reporting process – from concept to finished product.
- Working with finance, sustainability and communications experts, we act as the central hub.
- We bridge the gap between technology and communication: companies receive verified, compliant figures, while communications teams get compelling storytelling – both combined in a format that meets all regulatory standards.
A strategic tool
Machine-readable reporting has become a key strategic communication and management tool that ensures regulatory compliance, transparency and credibility. Companies that opt early for an integrated solution will gain a strong position with the capital market, investors and the public – and strengthen their competitive edge.
Discover how to implement XBRL easily and meet regulatory reporting requirements. Contact us for a no-obligation consultation.
Your customised service package
- Consulting, support and coordination across finance, sustainability and communications
- Interface function between technology, communication and design
- Your implementation partner: for formats that meet all regulatory standards
- Collaboration and coordination with external partners
- Monitoring and feedback loops for continuous improvement
More information
Melanie Meier
ESG Consultant
T +41 44 268 12 61
M +41 76 320 25 45
melanie.meier@linkgroup.ch
Othmar Krienbühl
Partner
T +41 44 268 12 62
M +41 79 430 11 91
othmar.krienbuehl@linkgroup.ch