ESRS S1 Company workforce

NEW! We have updated our articles on the scales!

Thanks to feedback from auditors and our customers, we have changed some points and added new examples.

We hope to provide even more clarity.

Scale

Key questions: How serious is the impact (positive/negative) on the people affected? E.G: Are basic human rights violated or restricted? Is physical and/or mental health or well-being significantly affected in a positive or negative way? Are regulations for the protection of Consumers and End-users complied with?

	Negative Impacts
5	Critical negative impacts: Extremely serious adverse effects on those affected, resulting in long-term, profound, existential, life-threatening consequences.
4	High negative Impacts: Significant restrictions that cause significant stress or change for those affected.
3	Moderate negative Impacts: Moderate restrictions that cause noticeable but manageable consequences for those affected.
2	Slight negative Impacts: Impairments on those affected that are perceptible but have only minor and temporary consequences.
1	Hardly any negative Impacts: No or barely perceptible adverse effects on those affected.

	Positive Impacts
5	Highest positive Impacts: Lasting and significant improvements for those affected, bringing long-term security, stability and a considerable increase in quality of life.
4	High positive Impacts: Substantial improvements that bring about significant relief or positive changes for those affected.
3	Moderate positive Impacts: Noticeable but manageable improvements that make the lives of those affected easier in a relevant way.
2	Slight positive Impacts: Minor but perceptible relief that slightly improves well-being in the short term.
1	Hardly any positive Impacts: No or only minimal positive impact on those affected.

Important note when formulating impacts: The mere reduction or avoidance of negative impacts does not constitute a positive impact. Positive impacts must not be actions that merely serve to compensate for a negative effect - see gross principle.

Possible "scale" indicators

The example indicators serve as a guide for the company-specific adaptation of the scales.

Note on European labor law: It can be assumed that compliance with labor law requirements in European Union countries already implies compliance with human rights. It can also be assumed that European labor law prevents child labor and forced labor.

Example indicators

Extent of impacts on occupational safety (workplace safety, etc.) of own employees
Extent of protection of own employees that goes beyond legal requirements e.g. ergonomic workplaces, extended training on occupational safety
Extent of Impacts on social dialogue and freedom of association of own employees
Extent of Impacts on the standard of living of own employees
Extent of impacts on the physical and mental health of own employees
Extent of impact on satisfaction and well-being of own employees
Extent of Impacts on Equal opportunities and development opportunities as well as skills development of own employees
Extent of Impacts on Employee Data Protection

Examples expanded and based on OECD (2018), OECD Due Diligence Guidance for Responsible Business Conduct, OECD Publishing, Paris, page 43 ff.

Scope

Key questions: How large is the proportion of people affected in relation to the respective population? E.G: How many Employee:s or Consumer:s are affected by the Impacts? How many workers in the Value chain are affected by the Impacts, taking into account the risk profile of the Supplier? How many people in the communities around operating or extraction sites are affected by the impacts?

	Negative/positive impacts
5	Global: Very high number of people are affected, for example >50% of the population
4	Large: High number of people affected, for example 30-50% of the population
3	Medium: Moderate number of people affected, for example 15-30% of the population
2	Limited: Small to moderate number of people are affected, for example 5-15% of the population
1	Local: Small number of people affected, for example <5% of the population

Possible indicators "Scope"

	S1	S2	S3	S4
Basic total	Total workforce	Total number of workers in the value chain	Total number of affected rights holders	Total number of End-users, Consumers

Irreversibility

Key questions: To what extent can the impacts be reversed and the original state restored? How much time and financial resources are required for restoration?

	Negative/positive Impacts
5	Impossible: There is no way to completely eliminate the Impacts
4	Difficult: There are considerable hurdles to remedying the impacts or restoring the original state (very long-term and/or very costly in terms of time and financial resources)
3	Moderate: Eliminating the impacts is feasible, but requires significant efforts to restore the original state (medium-term and/or significant effort in terms of time and financial resources)
2	Minor: Elimination of the Impacts is feasible and requires manageable efforts to restore the original condition (short-term and/or with manageable effort in terms of time and financial resources)
1	Minimal: Impacts can be remedied almost effortlessly to restore the original state (very short term and/or with little effort in terms of time and financial resources)

This article has been machine translated. In case of errors, please contact [email protected].

Assessment of Impacts (E2)

Assessment of Impacts (S2)

Assessment of Impacts (S3)

Assessment of Impacts (S4)

Assessment of Impacts (G1)