New Functionality In Microsoft Dynamics 365 Business Central 2025 Wave 1: Enable Taxonomy Elements For ESRS And Other Standards

This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2025 Wave 1 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2025 Wave 1.

The 3rd of the new functionality in the Sustainability management section is enable taxonomy elements for ESRS and other standards.

Businesses can map entries in Business Central with required taxonomies to get their data ready for Corporate Sustainability Reporting Directive (CSRD) reporting.

Business Central helps companies in the European Union to comply with the CSRD by enabling taxonomy elements for the European Sustainability Reporting Standards (ESRS) and other frameworks. This capability helps ensure accurate, transparent, and comprehensive sustainability reporting. Integrating these taxonomy elements simplifies the reporting process, saving you time and reducing the risk of noncompliance.

Enabled for: Users, automatically
Public Preview: Apr 2025
General Availability: Jul 2025

Feature Details

You can set up taxonomies in Business Central using various transactional data sources. The initial setups are prepared for the demo data, but you can adjust them to meet your specific needs. After configuration, you can aggregate existing data based on these taxonomies.

After you aggregate data for a specific reporting period, you can integrate with the ESG Reporting tool to prepare the data for reporting. Because Business Central doesn’t contain all the data needed for CSRD reporting, you can switch to the ESG Reporting tool where you’ll find a preconfigured CSRD template where you can add any missing metrics so you can generate the reporting file.

In the future, Microsoft say they will extend this integration to other ESG reporting standards.