Between Compliance and Impact

Over the past few months, we have had numerous conversations—with companies, experts, consultants, lawyers, and decision-makers. Again and again, we encountered similar questions and perspectives:

«The requirement for machine readability is not defined in the Code of Obligations but in the Ordinance — so caution is needed, as clarifications must not tighten the overarching law.»

«XBRL is only mentioned as an example in the explanatory report. Are there alternatives to XBRL for ensuring machine readability?»

These reactions and questions are valid, and the answer is not simple. Even though the Ordinance doesn’t prescribe a specific technical solution, it clearly defines a goal: sustainability data must be accessible in an automated, reliable, and comparable way — for authorities as well as other stakeholders. 

XBRL – More Than a Technical Format.

Technically, formats like XML, CSV, or JSON are machine-readable, but they lack semantic depth including the ability to convey meaning, connect structure, and ensure unambiguous interpretation. This is exactly where XBRL comes into play.

XBRL is not a format in the traditional sense, but an open, internationally recognized standard for machine-readable reporting. It enables: 

•  Structured, semantically clear, and automatically processable data

• The use of proven XBRL taxonomies like ESRS, GRI, or IFRS

• Systematic validation and comparability

• And a globally mature ecosystem, developed over many years

XBRL ensures that information is not just read —  but understood — regardless of how a report looks or what language it is in.

The fact that XBRL is mentioned only as one option in the explanatory report does not diminish its importance. On the contrary: those who aim for clearly defined, machine-processable sustainability data will hardly get around XBRL. 

Our Role – Guidance, Not Persuasion.

As a provider of a Software-as-a-Service solution with integrated XBRL functionality, we bear dual responsibility.

We are of course familiar with XBRL as a technical standard — with all its strengths and limitations. XBRL is not a standalone solution. For it to work in practice, several components must work in harmony: an XBRL taxonomy, clear rules and guidelines, technical validation — and most importantly, purposeful and meaningful use of the data.

XBRL is not an end in itself — it is a tool. And like any tool, it only helps when selected wisely, used precisely, and implemented with expertise.

Our goal is not to promote XBRL as the only true solution, but to use it where it adds real value — for companies, auditors, regulators, and other stakeholders who benefit from structured, comparable information.

Our role is to provide guidance, offer clarity, and respond to uncertainty with expertise, pragmatism, and balanced judgment. 

Machine Readability – Easier Said Than Done.

Making climate-related content within sustainability reporting machine-readable is currently far from trivial. The European Sustainability Reporting Standards (ESRS), their technical standards (RTS), and the associated XBRL taxonomy are being revised as part of the EU Omnibus Package.

In Switzerland, there are still no harmonized guidelines for implementing IFRS or GRI-based XBRL taxonomies — partly because there is no central coordinating body. The result: varied implementations, inconsistent solutions, reduced comparability.

We believe in the potential of XBRL — but only if it is implemented with foresight, expertise, and a focus on what truly matters. Only then does compliance become truly transparent. Reports become usable data. And data then creates impact. Because the value of a sustainability report lies not in its completeness — but in the decisions it enables.

When Regulations Obscure What Really Matters.

Between legal requirements, technical specifications, and the pressure to comply, the real goal can easily get lost.

While the EU is refining its regulations and the Swiss Federal Council adopts a wait-and-see approach, uncertainty is growing on the corporate side.

But within that uncertainty lies an opportunity: to return to the core of what sustainability reporting is about — communicating a company’s impact on the environment, society, and the economy in a clear, comparable, data-driven way. As a foundation for informed, forward-looking decisions.

When many companies follow this approach, each puzzle piece contributes to a broader picture — a cascade of transparency that leads to new clarity.

Where Responsibility Begins with Reality.

Sustainability does not begin with regulation — it begins with an honest look at your own impact.

It requires recognizing uncomfortable truths, making them measurable, and using them as a basis for responsible action. No report will save a glacier — but it can be the moment when numbers lead to responsibility.

When understood correctly, sustainability reporting becomes a powerful tool:
It reveals the impact of business actions, tracks progress, assesses measures — and forms the basis for strategic, future-ready decisions.

A Pragmatic Path – Step by Step.

Many companies and clients have asked us how to implement machine readability in Swiss climate reporting in a meaningful and practical way today.

This guide was created in response — and we are pleased to share it with you.
It reflects our perspective and outlines a pragmatic, practical path for implementing XBRL.

This is not about perfection — it is  about orientation. And about building experience with XBRL step by step — toward sustainable, future-proof, machine-readable reporting.

Impact Over Obligation.

Sustainability reporting is more than regulatory compliance. It is an expression of intent: to take responsibility for one’s actions. It focuses on impact and future viability — and opens up new perspectives and momentum for sustainable development.

Whichever path you choose — we are here to support you.

Thank you for your trust.
Your MDD Team