Understanding interoperability between ESRS and IFRS is essential for anyone working in ESG reporting.
Because it’s not just about complying with standards, but about how financial data is calculated and presented versus ESG data. And that detail changes everything.
Both frameworks are designed to bring transparency, but they don’t speak the same language.
While financial data benefits from years of maturity, stable methodologies and clear rules, ESG data is still under construction: more variables, more uncertainty, and often less consistency.
The important thing now is to connect these two worlds.
To see where they fit, where they clash, and what this means for companies reporting under both standards.
Because what used to be an “extra” can now determine how your business is perceived, how you access funding, or how you enter certain markets.
This is particularly relevant when aligning with evolving sustainable finance frameworks that are shaping capital allocation.
Because it’s no longer optional. Companies are starting to report under ESRS, while at the same time global financial markets are pushing for alignment with IFRS.
If we don’t understand how they connect, we’re going to duplicate efforts and waste time (and money).
More and more regulations demand ESG data with the same level of rigor as financial data.
Which brings us to a key question: how do we integrate two different ways of measuring, reporting, and presenting information?
When we talk about interoperability, we’re referring to the ability to connect two reporting frameworks without redoing everything from scratch.
In this case, ESRS, driven by Europe, and IFRS, with a global focus, are looking for common ground so data can be comparable and reusable.
This doesn’t mean they are the same, but they are becoming aligned in structure, concepts, and key categories.
What used to be a maze of metrics, is now starting to take on a shared logic.
Because the pressure is real. Investors, regulators, and major business groups demand clarity, traceability, and comparability.
If every company reports in its own way, no one can make decisions based on reliable data.
Aligning ESRS and IFRS helps simplify information gathering and reduces the workload for companies. Fewer duplications, more efficiency.
And this is also about competitiveness.
If we want to access financing or enter demanding markets, having ESG data that reads the same in Brussels and New York is increasingly necessary.
Although they aim to align, there are important differences in how data is calculated and reported.
ESRS is based on double materiality (inside-out and outside-in impact), while IFRS focuses only on financial materiality.
ESRS requires more granularity, even across the value chain. IFRS prioritizes what is relevant for investors.
ESRS includes projections, action plans, and targets. IFRS focuses more on the present and current financial state.
Knowing this allows us to adjust our data collection strategy and decide what to show, how, and when.
Because reporting isn’t just about compliance, it’s about positioning your company in front of decision-makers.
When we talk about interoperability, the real challenge lies in the data. Because it's not just about what gets measured, but also how it’s measured, who validates it, and what it’s used for.
Financial data has followed clear rules for decades. ESG data is still taking shape, and that requires a different approach if we want to report without creating chaos.
Financial data relies on standardized accounting principles, with formulas and criteria understood by any company, auditor, or regulator.
Everything is tied to definite figures, balance sheets, revenues, expenses. There are internal controls, external validations, and defined reporting cycles. Nothing new for financial teams.
This is a different world. ESG data comes from multiple sources: operations, suppliers, internal teams, impact reports, etc.
For example, calculating your carbon footprint may require integrating data from logistics, energy consumption, and procurement.
It also combines qualitative and quantitative information, and often there is no single way to calculate a metric. What’s needed is traceability and consistency, for instance, when using an emission factor to estimate GHG emissions across supply chains.
Both types of data require rigor, but their starting points are not the same.
While financial data follows well-defined cycles, ESG data is built step by step, with more dispersed and less consolidated sources.
The result? Collecting and validating ESG data takes more work, unless it’s well-automated from the beginning.
Linking financial and ESG data enables more complete reports without doubling the effort. And this is no longer just efficiency, it's a way to show market resilience.
A centralized, aligned database makes it easier for audit and external review teams to work with less friction and more agility.
Financial results alone aren’t enough.
Stakeholders want to see how ESG impact is managed, and if both types of data are presented under a common logic, credibility increases.
ESG standards are evolving fast, and interoperability ensures that your reports can adapt to new requirements without starting from zero.
With a unified database that combines financial and ESG data, strategic decisions no longer depend on scattered files or isolated reports.
Everything flows from a single source of truth.
With a solution that centralizes and connects ESG data with all the frameworks you’re already using or will need. No mess, no consultants.
Combining these two worlds is not impossible, but it’s not simple either. Here are the main obstacles you’ll face.
Unifying calculation criteria, formats, and reporting frequencies is no small task. ESG and financial systems were not designed to communicate with each other.
Without a shared structure, the risk of errors or missing key data is high.
While progress has been made, many sectors still lack clarity on which metrics to use and how to measure them.
This means every company does it their own way, making comparisons difficult.
And when trying to merge that with financial data, the puzzle becomes even harder to solve.
Changing how we manage data takes time. And if it’s done manually or with fragmented tools, costs skyrocket.
The challenge is doing it without slowing operations or overwhelming teams.
We’re not auditors or consultants. We’re a solution that gathers all your ESG information, turns it into usable data, and adapts it to the formats you need.
All from a single platform, without duplicating efforts.
It doesn’t matter which regulation is on your desk. We adapt to any ESG use case.
We connect your data with the frameworks the market requires, today and in the future.
Forget endless spreadsheets and back-and-forth emails. Our solution is designed so your entire team can work from the same place, with consistent, real-time data.
Less operational burden, fewer mistakes, and everything ready for reporting without complications.
If we don’t measure properly, we won’t improve anything.
Having ESG data that is reliable, traceable, and aligned with financials is no longer a bonus, it’s a minimum requirement to remain competitive.
And if we set things up right from the beginning, we avoid a lot of problems later on.
We’re not talking about what’s coming, but about what’s already happening. Companies that don’t properly integrate ESG and financial data will be left behind.
Can we afford to relax? Not really. Interoperability between frameworks like ESRS and IFRS is already a market expectation.
Collect a data point once and use it for CSRD, SBTi, Taxonomy, ISOs, or whatever comes next. That’s real interoperability.
That’s where we need to be if we want to do ESG intelligently.
Take inventory of what you already have. Often the data exists, but it’s scattered. We need to lay it all out to see how it fits together.
Some metrics repeat or are similar. Finding them lets you reduce workload and use one data point for multiple reports.
This not only boosts efficiency, it also improves consistency.
Having data isn’t enough. We need to ensure it’s well-calculated and validated. That requires clear processes.
Without control, any number loses credibility.
Managing this without tech is madness. You need a solution that connects all data sources and adapts them to different reporting frameworks.
That’s where Dcycle comes in. We’re not auditors or consultants. We’re a solution for companies that want to do ESG strategically.
Standards change, and what works today may not tomorrow. That’s why you must review and adjust regularly, not just when it’s time to report.
This avoids surprises and keeps you prepared for whatever comes next.
CSRD requires reporting under ESRS, but we can’t ignore that many investors rely on IFRS.
Interoperability is what lets you use the same data for both frameworks, without duplicating work.
Yes, as long as the solution can align metrics, formats, and regulatory demands.
In our case, Dcycle gathers all your ESG data and adapts it for any use case: CSRD, SBTi, ISOs, Taxonomy, NFI, whatever you need.
Avoiding duplication, saving time, and reducing costs.
If you’re already collecting ESG data, the smart thing is to reuse it across all reports, without starting from scratch each time.
Start by checking if they have the same reporting periods, scope, and level of detail. Then, verify if they can be linked to the metrics required by each framework.
The easiest way? Use a solution that automates and clearly shows it.
You’ll lose efficiency, credibility, and your ability to compete. Plus, you risk failing to meet what regulators or investors expect.
Interoperability isn’t optional. It’s the fastest, smartest way to stay aligned with what’s next.
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Carbon footprint calculation analyzes all emissions generated throughout a product’s life cycle, including raw material extraction, production, transportation, usage, and disposal.
The most recognized methodologies are:
Digital tools like Dcycle simplify the process, providing accurate and actionable insights.
Some strategies require initial investment, but long-term benefits outweigh costs.
Investing in carbon reduction is not just an environmental action, it’s a smart business strategy.
