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The „S“ of ESG in the ESRS

The “S” for “Social” in the ESRS stands for corporate social responsibility and includes aspects such as occupational health and safety, diversity or social commitment.

The ESRS (European Sustainability Reporting Standards) Exposure Drafts define on a very detailed level the future reporting requirements od the CSRD. Below you find an overview of the topics included in the Standards for social topics.

The respective standards can be found here.

S1 ESRS: Own workforce

Policies, targets, action plans and resources

  • Disclosure Requirement S1-1 – Policies related to own workforce
  • Disclosure Requirement S1-2 – Processes for engaging with own workers and workers’ representatives about impacts
  • Disclosure Requirement S1-3 – Channels for own workers and workers’ representatives to raise concerns
  • Disclosure Requirement S1-4 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
  • Disclosure Requirement S1-5 – Taking action on material impacts on own workforce and effectiveness of those actions
  • Disclosure Requirement S1-6 – Approaches to mitigating material risks and pursuing material opportunities related to own workforce

Performance measures

  • Disclosure Requirement S1-7 – Characteristics of the Undertaking’s Employees
  • Disclosure Requirement S1-8 – Characteristics of non-employee workers in the undertaking’s own workforce

Working conditions

  • Disclosure Requirement S1-9 – Training and Skills Development indicators
  • Disclosure Requirement S1-10 – Coverage of the health and safety management system
  • Disclosure Requirement S1-11 – Performance of the health and safety management system
  • Optional Disclosure – Disclosure Requirement S1-12 – Working Hours
  • Disclosure Requirement S1-13 – Work-Life Balance indicators
  • Disclosure Requirement S1-14 – Fair remuneration
  • Disclosure Requirement S1-15 – Social security eligibility coverage

Equal opportunities

  • Disclosure Requirement S1-16 – Pay gap between women and men
  • Disclosure Requirement S1-17 – Annual total compensation ratio
  • Disclosure Requirement S1-18 – Discrimination incidents related to equal opportunities
  • Disclosure Requirement S1-19 – Employment of persons with disabilities
  • Disclosure Requirement S1-20 – Differences in the provision of benefits to employees with different employment contract types

Other work-related rights

  • Disclosure Requirement S1-21 – Grievances and complaints related to other work-related rights
  • Disclosure Requirement S1-22 – Collective bargaining coverage
  • Disclosure Requirement S1-23 – Work stoppages
  • Disclosure Requirement S1-24 – Social dialogue
  • Disclosure Requirement S1-25 – Identified cases of severe human rights issues and incidents
  • Disclosure Requirement S1-26 – Privacy at work

S2 ESRS: Workers in the value chain

General, strategy, governance and materiality assessment

  • Disclosure Requirement S2-1 – Policies related to value chain workers
  • Disclosure Requirement S2-2 – Processes for engaging with value chain workers about impacts
  • Disclosure Requirement S2-3 – Channels for value chain workers to raise concerns
  • Disclosure Requirement S2-4 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
  • Disclosure Requirement S2-5 – Taking action on material impacts on value chain workers and effectiveness of those actions
  • Disclosure Requirement S2-6 – Approaches to mitigating material risks and pursuing material opportunities related to value chain workers

S3 ESRS: Affected Communities

General, strategy, governance and materiality assessment

  • Disclosure Requirement S3-1 – Policies related to affected communities
  • Disclosure Requirement S3-2 – Processes for engaging with affected communities about impacts
  • Disclosure Requirement S3-3 – Channels for affected communities to raise concerns
  • Disclosure Requirement S3-4 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
  • Disclosure Requirement S3-5 – Taking action on material impacts on affected communities and effectiveness of those actions
  • Disclosure Requirement S3-6 – Approaches to mitigating material risks and pursuing material opportunities related to affected communities

S4 ESRS: Consumers and end-users

General, strategy, governance and materiality assessment

  • Disclosure Requirement S4-1 – Policies related to consumers and end-users
  • Disclosure Requirement S4-2 – Processes for engaging with consumers and end-users about impact
  • Disclosure Requirement S4-3 – Channels for consumers and end-users to raise concerns
  • Disclosure Requirement S4-4 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
  • Disclosure Requirement S4-5 – Taking action on material impacts on consumers and end-users and effectiveness of those actions
  • Disclosure Requirement S4-6 – Approaches to mitigating material risks and pursuing material opportunities related to consumers and end-users

Next Steps:

As shown above the reporting standards are a comprehensive regulation that must be prepared in due time. If you want to start the preparation for the CSRD. Contact us, now.

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Georg Tichy

Georg Tichy is a management consultant in Europe, focusing on top-management consultancy, projectmanagement, corporate reporting and fundingsupport. Dr. Georg Tichy is also trainer, lecturer at university and advisor on current economic issues. Contact me or Book a Meeting