Taxonomies Overview

Mettle Capital reads conversations about companies daily. In order to structure the analysis, those companies are tagged against a sector and industry (to provide benchmarks) and against two standard reporting taxonomies – ESRS and ISSB.

To complete the double materiality assessment required under CSRD, the ESRS taxonomy is supplemented with other topics that have been found material in Wave 1 reporting. These topics make up the Non-ESRS Taxonomy.

The ESRS and ISSB taxonomies both contain topics on Environmental, Social and Governance so there is a large amount of overlap. However, they are not interoperable so users should choose between them based on regulatory jurisdiction where EU operating companies must use ESRS and non-EU operating companies often use ISSB.

The other main difference is materiality. ESRS is predicated on double materiality – impact materiality and financial materiality. ISSB is predicated on single materiality – financial materiality only.