ESRS Standard
ESRS Standard
41. The objective of this GDR is to enable an understanding of the policies that the undertaking has in place to prevent, mitigate, bring to an end, minimise or remediate its material actual and potential negative impacts, and to manage material risks and pursue material opportunities or positive impacts.
42. The undertaking shall disclose the following information about policies adopted to manage its material impacts, risks and opportunities:
(a) a description of the key contents of the policy, including its general objectives and the material impacts, risks or opportunities it relates to, and, if there have been changes to the policies adopted during the reporting period, a description of those changes;
(b) a description of the scope of the policy, or of its exclusions, in terms of the undertaking's own operations, its upstream or downstream value chain and geographies and, if defined, the affected stakeholder groups;
(c) if the policy refers to third-party standards or initiatives that the undertaking commits to respect through the implementation of the policy, a reference to the third-party standard or initiative in question; and
(d) for social topics, a description of the consideration given to the interest of affected stakeholders in setting this policy, if such considerations have been given.
43. The undertaking shall disclose whether it has an overarching human rights policy committing to implement the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work and the OECD Guidelines for Multinational Enterprises. If this is the case, the undertaking shall disclose the information specified in paragraph 42 for that policy and shall specify which groups of affected stakeholders are covered (e.g. own workforce, workers in the value chain, affected communities, consumers and end-users).
Note on paragraph 43:
This information supports the information needs of financial market participants subject to Regulation (EU) 2019/2088 because it is derived from additional indicators related to principal adverse impacts, as set out by indicator #11 in Table 1 and indicator #9 in Table 3 of Annex 1 of Commission Delegated Regulation (EU) 2022/1288 with regard to disclosure rules on sustainable investments ('Lack of processes and compliance mechanisms to monitor compliance with UN Global Compact principles and OECD Guidelines for Multinational Enterprises' and 'Lack of a human rights policy'). It also supports the information needs of benchmark administrators to disclose ESG factors subject to Regulation (EU) 2020/1816, as set out by indicator 'Exposure of the benchmark portfolio to companies without due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8' in Sections 1 and 2 of Annex II.
Application Requirements (AR)
Application Requirements (AR)
AR 34 for para. 43
When disclosing information about its human rights policy to implement the UN Guiding Principles on Business and Human Rights, the undertaking shall consider the International Bill of Human Rights, which consists of the Universal Declaration of Human Rights and the two Covenants that implement them, and the ILO principles concerning fundamental rights set out in the International Labour Organization's Declaration on Fundamental Principles and Rights at Work.
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