On 31st January 2022, the Climate Disclosure Standards Board (CDSB) was consolidated into the IFRS Foundation to support the work of the newly established International Sustainability Standards Board (ISSB). While this site and its resources remain relevant for preparers looking to improve sustainability disclosure until such time as the ISSB issues its IFRS Sustainability Disclosure Standards on such topics, no further work or guidance will be produced or published by CDSB. For further information please visit the IFRS website.

Taxonomy development due process

Currently, there are no defined and generally accepted methodologies for XBRL Taxonomy developments, however the process roughly corresponds to software development.

The methodology proposed for the development of the CCRT follows closely the one implemented by the International Accounting Standards Board (IASB) for the development of International Financial Reporting Standards (IFRS) Taxonomy.  This is considered best practice.  CDSB convened an XBRL Technical Working group to oversee and inform the process, while providing consultation and feedback. 

The Taxonomy development process will comprise the following phases:

1. Planning and analysis

  • Preparatory work to guarantee success;
  • Initial requirement process, to define the scope of taxonomy, and use cases and a time line for deliverables; and,
  • Milestones of Taxonomy development.

2. Design

  • Taxonomy Architecture and data model set in accordance with the best practice and existing technologies.

3. Taxonomy building or implementation

  • Iterative process developed in consultation with technology and subject matter experts;
  • Small cycles of testing that will validate conformance with XML and XBRL specifications and best practice; and,
  • Conformance with requirements and use cases; and,
  • Testing with artificial climate change data and testing with real life climate change company reports.

4. Taxonomy consultation

  • Exposed publicly for a minimum period of time of 30 days; and,
  • Where possible, the consultation of the Taxonomy will also comprise live demonstration of the concept to key companies.

5. Taxonomy publication and maintenance

  • Once comments from the consultation stage has been considered, the final XBRL taxonomy is published, together with any support materials.