Green Open Filing Metric Ecosystem
Green: About the climate and environment change footprint
Open: Suitable for use in any Jurisdiction, neutral, transparent, free and at no cost
Filing: Extensible reporting framework, for financial and non-financial entities, in line with regulatory reporting frameworks.
Metric: Taxonomy of economic activities suitable for use with any current or future metrics (metrics-agnostic) oriented to structured data.
Ecosystem: Towards a robust and internationally consistent climate and environment-related disclosure
Be one of the Grassroot Entities
Proof of Concept: Private and public leader entities to contribute and/or participate in the pioneer development of Climate Change reports according to the EU Directives and financial reporting technology (RegTech).
Goal: Create an extensible reporting taxonomy and initial reporting framework, for financial and non-financial entities, on the climate change footprint, suitable for use in any Jurisdiction and with any metrics, in line with regulatory reporting frameworks. The framework will be metrics-agnostic, orirented to structured data, assured by Blockchain, taking advantage of the lessons learnt in Banking and Insurance reporting taxonomies, supported by Data Point Model methodology and being Internet-ready (XHTML plus iXBRL).
Challenge: The existence of several metrics and models about sustainability and climate reporting. The European Commission “Consultation document on the update of the non-binding guidelines on non-financial reporting” requires a substantial number of potentially different disclosures, especially for Banking and Insurance entities, with not a closed reference of metrics. The CDP, the Spanish Accounting Association (AECA), and many other institutions as well, has also its own operational sustainability reporting. But a commonly accepted taxonomy is still missing.
The Central Banks and Supervisors Network for Greening the Financial System (launched at the Paris One Planet Summit 2017), in the report A call for action, recommend (5) Achieving robust and internationally consistent climate and environment-related disclosure and (6) Supporting the development of a taxonomy of economic activities [even when the] Recommendations 5 and 6 do not fall directly within the remit of central banks and supervisors but point to actions that can be taken….
Strategy: Take advantage of the lessons learnt in the development of European Banking and Insurance reporting, with a very large model linking a lot of different metrics, breakdowns and disaggregations. The Data Point Model (DPM) methodology was created precisely to deal with this kind of complex reporting. DPM has currently a CEN CWA status and it has been presented to ISO.
Governance: Self organized working team. In the rare case of disputes, the President of the Eurofiling Foundation has the ultimate word.
Team and resources: Volunteers and companies ready to work in a zero-budget approach, according to the Bylaws of the Eurofiling Foundation. Minor costs (as Internet presence) are covered by XBRL Spain Association. Experts are particularly welcomed as volunteers for:
.- Climate change metrics
.- Report modelling (preferably DPM and XBRL)
.- Digital Identity
.- Entities for voluntary filing testing
.- Project management and logistics
Proposal: Initiate an effort, based in volunteers, for a DPM framework integrating all the existing models for climate reporting. Our role is put together all the reference models in a workable reporting solution.
Task to be done: Lay the foundations for a Green Open Filing Metric Ecosystem (GOFME, provisional name). The reporting model will be inspired, due to its similarity, by the existing reporting models in Europe for Banking and Insurance. It would then be an extensible taxonomy for iXBRL reporting modelled (due to its complexity) with the Data Point Model methodology. Extensible means that it has to admit any present or future metric of climate change. In the absence of an Authority, it is necessary to design the reporting ecosystem: Metrics to be used, Digital Identity of the issuer (LEI, eIDAS, EU core vocabularies?), Integrity and non-repudiation (hash blockchain?), possible global repository (prototypes as www.eftg.eu and www.xbrlchain.info ?), good practices, sustainability of the project, etc.
Key success factors:
1 – Contribute to the UN Climate Change Challenge
2 – Contribute to the European Climate efforts
3 – Visualize the DPM advantages when dealing with complex reporting challenge
4 – Deal with a complex model in which Eurofiling practitioners have a lot of expertise
5 – Build a sustainable volunteer team, under the umbrella of Eurofiling Foundation.
Opportunity window: UN Climate Change Conference COP25 is to be held 2-13 December 2019 in Madrid (under the Presidency of Chile). This kick-off exercise would have as perfect natural hosting space the UN Climate Change Conference. The New European Commission, just starting on duty, has the climate change in the top priority. As a significative precent, the kick-off meeting for the flagship Banking Taxonomy COREP (birthplace of DPM methodology) took place in Madrid 15 years ago.