ARKK Blog

Discover the Benefits of Voluntary ESG Reporting

Written by ARKK | 13/08/2025

 

Discover the Benefits of Voluntary ESG Reporting

As sustainability reporting expectations continue to rise, more organisations are choosing to align with established voluntary standards like the Global Reporting Initiative (GRI). Designed to support transparency, GRI provides a widely recognised framework for disclosing environmental, social and governance (ESG) impacts. 

At the same time, regulatory change is on the horizon. The Corporate Sustainability Reporting Directive (CSRD) is expanding across the UK and EU, with mandatory ESG disclosures set to begin in 2026 for many large companies. But whether your organisation is facing a legal obligation or simply aiming to lead on transparency, voluntary ESG reporting (with digital tagging) is emerging as a smart, strategic move. 

Why Voluntary ESG Filing Makes Sense 

Choosing to file your ESG report early using structured digital tagging can offer substantial benefits whether aligned to GRI, CSRD, or both. It allows you to: 

  • Build practical experience with ESG frameworks 
  • Identify and address gaps in data or processes 
  • Test digital tagging tools and validation systems 
  • Strengthen collaboration between sustainability, finance, and compliance teams 
  • Engage stakeholders with clear, structured disclosures without the pressure of regulation 

Early adoption is more than a compliance rehearsal. It’s an opportunity to embed ESG reporting best practices into your operations and gain confidence in your data before it’s under scrutiny. 

Digital ESG Reporting Is Becoming the Norm 

Both voluntary frameworks like GRI and mandatory regimes like CSRD are moving toward digital, structured reporting formats. GRI’s own digital taxonomy has been developed to support machine-readable sustainability disclosures. This aligns with global trends in digital reporting and helps standardise how organisations communicate ESG performance. 

Firms that adopt voluntary tagging now are better placed to adapt to evolving requirements. Whether preparing for CSRD or strengthening voluntary ESG reporting, early adoption offers a low-pressure environment to get familiar with digital tools and frameworks. 

Drawing Parallels with ESEF: A Technical Head Start 

Many organisations already use iXBRL tagging for ESEF-compliant financial statements. The tagging required for ESG reports (whether under GRI or CSRD) builds on similar technical principles. Familiarity with XHTML formatting, taxonomy mapping, and validation workflows can ease the transition. 

Companies that voluntarily adopted ESEF tagging of financial statements ahead of deadlines saw fewer technical issues, smoother assurance, and better internal alignment. The same logic applies to ESG. If you already tag financial statements, tagging ESG data is a natural next step. 

To explore how structured ESG data is evolving, read ARKK’s article on the GRI digital taxonomy.

Preparing for CSRD Tranche 2, but With Broader Benefits 

CSRD will soon become mandatory for large UK and EU companies that meet two of the following: 

  • Over 250 employees 
  • Over €50 million in turnover 
  • Over €25 million in total assets 

Many firms will need to publish CSRD-aligned reports in 2026, covering the 2025 financial year, although some are already compliant. But even if your company is not in scope (or not yet) voluntary ESG reporting aligned to GRI is an excellent way to prepare. 

It gives you time to trial ESG narratives, test assurance readiness, and create consistent, verifiable reporting practices. 

The Risks of Waiting 

Leaving digital ESG tagging until it's mandatory can lead to: 

  • Validation errors during submission 
  • Data quality issues across systems 
  • Difficulties during audit and assurance 
  • Misalignment between narrative reports and structured data 

Voluntary tagging now gives your teams time to learn, adapt, and optimise. 

ARKK’s Perspective: Prepare Early, Learn Now 

ARKK has supported organisations through major digital reporting transitions, including ESEF tagging of financial statements and HMRC iXBRL reporting. Having already tagged numerous ESG reports from voluntary filers, we understand the digital infrastructure, formatting rules, and cross-functional workflows that underpin effective disclosure. 

Our team is actively engaged in developments across GRI and CSRD reporting, and we’re helping clients assess readiness, develop filing strategies, and understand how voluntary ESG reporting fits into a wider compliance roadmap. Learn more about how ARKK is already supporting clients with ESG reporting here.

Conclusion: Structured ESG Reporting Starts With Voluntary Tagging 

Whether you’re aligning with GRI, preparing for CSRD, or simply building stronger ESG governance, digital ESG tagging is a valuable capability to build now. 

Voluntary filing enables your organisation to: 

  • Trial structured ESG reporting formats 
  • Build team capability and internal controls 
  • Align sustainability and financial narratives 
  • Improve credibility with investors and stakeholders 
  • Stay ahead of emerging regulatory and market expectations 

It’s not just about ticking a box; it’s about building trust, transparency, and long-term resilience. Visit arkksolutions.com/esg or get in touch to discuss how voluntary ESG tagging, aligned to GRI or CSRD, can help your business take the next step in its reporting journey.