ESRS G1 Corporate Management
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 public or the affected stakeholders, e.g. Employee, Supplier, business partner, competitor?
| Negative Impacts |
5 | Critical negative impacts: Extremely serious adverse effects on the stakeholder (group)/company that have long-term, far-reaching, existential consequences |
4 | High negative Impacts: Significant restrictions that cause significant burdens or changes for the stakeholder (group)/company |
3 | Medium negative Impacts: Moderate restrictions that cause noticeable but manageable consequences for the stakeholder (group)/company |
2 | Slight negative impact: Slight adverse effects on the stakeholder (group)/company that are perceptible but have only minor and temporary consequences |
1 | Hardly any negative Impacts: No or barely perceptible adverse impact on the stakeholder (group)/company |
| Positive Impacts |
5 | Maximum gain in trust: Extremely profound positive impacts on stakeholders (groups)/the company that bring long-term, sustainable and existence-securing benefits. |
4 | High gain in trust: Substantial improvements that bring about significant positive changes for stakeholders (groups)/the company, e.g. through increased integrity, transparency or sustainable business practices. |
3 | Moderate gain in trust: Tangible but manageable benefits for stakeholders (groups)/the company, resulting in improved perception and credibility. |
2 | Slight positive Impacts: Minor, but recognizable improvements for stakeholders (groups)/the company, resulting in increased trust and a more positive reputation. |
1 | Hardly any positive Impacts: Changes are minimal or not recognizable, with no noticeable impact on trust, integrity or corporate reputation. |
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.
| Example indicators |
G1 |
|
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 widespread are the Impacts in relation to the company's overall area of activity? How high is the proportion of affected stakeholders, e.g. among suppliers or competitors?
| Negative/positive impacts |
5 | Global: Very high number, e.g. >50% of the stakeholder (group) is affected |
4 | Large: High number, e.g. 30-50% of the stakeholder (group) are affected |
3 | Medium: Moderate number, e.g. 15-30% of the stakeholder (group) is affected |
2 | Limited: Low to moderate number, for example 5-15% of the stakeholder (group) is affected |
1 | Local: Small number, for example <5% of stakeholders (group) are affected |
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].