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 of the CSRD. Below you find an overview of the topics included in the Standards for social topics. In November 2022 the Exposure Drafts have been updated in a version that has been sent to the EU-Commission. In this updated version the datapoints to report have been reduced and topics have been summarized.
Table of contents
The respective standards can be found here. This Article has been Updated in February 2023
DRAFTS TO EU-COMMISSION
S1: Own workforce
ESRS 2 General Disclosures
Strategy: Impacts, risks and opportunities management
- 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 – Processes to remediate negative impacts and channels for own workers to raise concerns
- Disclosure Requirement S1-4 – Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions
Metrics and targets
- Disclosure Requirement S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
- Disclosure Requirement S1-6 – Characteristics of the undertaking’s employees
- Disclosure Requirement S1-7– Characteristics of non-employee workers in the
undertaking’s own workforce
- Disclosure Requirement S1-8 – Collective bargaining coverage and social dialogue
- Disclosure Requirement S1-9 – Diversity indicators
- Disclosure Requirement S1-10 – Adequate wages
- Disclosure Requirement S1-11 – Social protection
- Disclosure Requirement S1-12– Persons with disabilities
- Disclosure Requirement S1-13 – Training and skills development indicators
- Disclosure Requirement S1-14 – Health and safety indicators
- S1-15 – Work-life balance indicators
- Disclosure Requirement S1-16 – Compensation indicators (pay gap and total compensation)
- Disclosure Requirement S1-17 – Incidents and complaints and severe human rights impacts and incidents
S2: Workers in the value chain
ESRS 2 General disclosures
- Disclosure Requirement related to ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction of impacts and the undertaking’s strategy and business model(s)
- Disclosure Requirement related to ESRS 2 SBM-1 Market position, strategy, business model(s) and value chain
Impact, risk and opportunity management
- 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 – Processes to remediate negative impacts and channels for value chain workers to raise concerns
- Disclosure Requirement S2-4 – Taking action on material impacts on value chain workers, and approaches to mitigating material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions
Metrics and Targets
- Disclosure Requirement S2-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
S3: Affected Communities
ESRS 2 General disclosures
Strategy
- ESRS 2- SBM 4 – S3 Material impacts, risks and opportunities and their interaction with strategy and business model(s)
- ESRS 2- SBM 5 – S3 Views and interests of stakeholders
Impacts, risks and opportunities management
- 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 – Processes to remediate negative impacts and channels for affected communities to raise concerns
- Disclosure Requirement S3-4 – Taking action on material impacts on affected communities, and approaches to mitigating material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions
Metrics and Targets
- Disclosure Requirement S3-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
S4: Consumers and end-users
ESRS 2 General Disclosures
Strategy
- Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with the undertaking’s strategy and business model(s)
- Disclosure Requirement related to ESRS 2 SBM-2 –Views and interests of stakeholders
Impact, risk and opportunity management 5
- Disclosure Requirement S4-1 – Policies related to consumers and end-users
- Disclosure Requirement S4-2 – Processes for engaging with consumers and end-users about impacts
- Disclosure Requirement S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
- Disclosure Requirement S4-4 – Taking action on material impacts on consumers and end-users, and approaches to mitigating material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions
Metrics and targets
- Disclosure Requirement S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
EXPOSURE DRAFTS
S1: 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: 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: 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: 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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