ESRS Standard
ESRS Standard
16. The undertaking shall describe the key actions and resources used to manage its material positive and negative impacts, risks and opportunities related to its own workforce in accordance with ESRS 2 GDR-A.
17. In relation to material negative impacts on its own workforce, the undertaking shall describe:
(a) its key actions taken, planned or underway to prevent, mitigate, bring to an end, minimise and remediate material negative impacts on its own workforce, including its approach in situations where tensions arise between such actions and other business pressures; and
(b) how it tracks and assesses the effectiveness of these actions in delivering outcomes for its own workforce. This disclosure can be omitted if the undertaking discloses how it tracks the effectiveness of its actions in accordance with ESRS 2 GDR-T or GDR-M. In that case, a reference to that disclosure is sufficient.
Application Requirements (AR)
Application Requirements (AR)
AR 4 for para. 17 (Key actions)
The actions taken by the undertaking differ depending on its connection to the impact and how it has identified the actions as appropriate for addressing material impacts.
This disclosure requirement also applies to key actions to provide, cooperate in, or enable remediation in cases of actual negative impacts. Key actions to prevent, mitigate, bring to an end, minimise or remediate impacts include the use of different types of leverage and/or collective actions taken through multistakeholder and/or industry initiatives.
AR 5 for para. 17 (Climate transition)
The undertaking shall present its actions in a way that enables users to understand the connections that exist between different topics in accordance with Chapters 3.3 and 9.1 of ESRS 1 General Requirements. This applies to measures taken to mitigate negative impacts on its own workforce that may arise from the transition to a low-carbon and climate-resilient economy. For example, downscaling or mass dismissal may occur when a factory is closed, and this could lead to measures such as intra-company placements or early retirement plans with an impact on the employees.
Examples from previous practice
Examples from previous practice
The examples are only a guide to how other companies have reported a disclosure requirement so far. Audited ESRS reports are not yet available. There is no guarantee that the examples are correct or complete.
S1-3 – Measures for employee protection
ISO occupational health and safety management system
All production sites are certified under the ISO occupational health and safety management system. This management system for health and safety at work serves to identify, control and reduce risks. It is based on the principle of continuous improvement (Plan-Do-Check-Act) and supports the assessment of hazards in all areas of the company. Based on feedback from relevant stakeholder groups, targets are set to minimise material risks. The risk assessment at the production sites includes an analysis of site-specific activities. In this process, potential harm is identified, hazards are assessed, preventive measures are defined and opportunities for improvement are sought. Regular reviews ensure that the controls remain effective. Assessments are adjusted when changes occur or after incidents.
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