ESRS Standard
ESRS Standard
42. The objective of this DR is to allow an understanding of the extent to which incidents of discrimination and other human rights incidents affect the undertaking's own workforce.
43. For material sub-topics the undertaking shall disclose:
(a) subject to relevant privacy regulations, the number of substantiated incidents of discrimination at work on the grounds of gender, racial or ethnic origin, nationality, religion or belief, disability, age, sexual orientation, or other relevant forms of discrimination, including harassment, identified in the reporting period;
(b) subject to relevant privacy regulations, the number of substantiated human rights incidents connected to its own workforce identified in the reporting period, excluding those that relate to discrimination, which are reported according to paragraph 43(a); and
(c) the total amount of fines, penalties and compensation for damages recognised during the reporting period in the financial statements for incidents of discrimination and other human rights incidents.
Application Requirements (AR)
Application Requirements (AR)
AR 36 for para. 43(b) (Human rights incidents)
The human rights incidents in scope for this disclosure are those that relate to not respecting internationally recognised human rights as defined in Directive (EU) 2022/2464 (CSRD), Article 29b(2)(b)(iii). These incidents are understood as the number of substantiated instances registered by the undertaking of:
(a) judicial and non-judicial proceedings (such as cases before domestic courts and tribunals, mediation and complaints filed with the National Contact Points for OECD Multinational Enterprises); and
(b) other incidents, including those it identified through its internal processes.
For the purpose of this disclosure, only substantiated and verified instances are to be reported. An instance is substantiated when it is evidenced by objective, factual and verifiable information. An instance is verified when a Court, the OECD or an administrative authority has made a formal finding that the instance occurred. Not all ongoing judicial or non-judicial proceedings, and not all other instances registered by the undertaking, are necessarily substantiated instances.
AR 37 for para. 43(a) (Incidents of discrimination)
The incidents of discrimination in scope for this disclosure are those that relate to discrimination. These incidents are understood as the number of substantiated instances registered by the undertaking of:
(a) judicial and non-judicial proceedings (such as cases before domestic courts and tribunals, mediation and complaints filed with the National Contact Points for OECD Multinational Enterprises); and
(b) other incidents, including those it identified through its internal processes.
For the purpose of this disclosure, only substantiated and verified instances are to be reported. An instance is substantiated when it is evidenced by objective, factual and verifiable information. An instance is verified when a Court, the OECD or an administrative authority has made a formal finding that the instance occurred. Not all ongoing judicial or non-judicial proceedings, and not all other instances registered by the undertaking, are necessarily substantiated instances.
AR 38 for para. 43(a) and (b) (Human rights incidents and incidents of discrimination)
When applying the filter of information materiality (paragraph 23 of ESRS 1 General Requirements) to the information about incidents referred to under paragraph 43(a) and (b), the undertaking’s assessment is primarily based on the severity of the impacts on its own workforce.
AR 39 for para. 43 (Human rights incidents and incidents of discrimination)
If the undertaking considers that changes in human rights incidents and incidents of discrimination are relevant for understanding the effectiveness and availability of channels to raise concerns or needs, including grievance mechanisms, it may cross-reference paragraph 43(b) and paragraph 14.
In accordance with ESRS 2 GDR-M, the undertaking shall disclose the methodology it used to compile the data on the incidents referred to in paragraph 43(a) and (b).
AR 40 for para. 43(a)(b) (Remedy or actions related to incidents disclosed)
The way the undertaking has addressed or is addressing incidents referred to in paragraph 43(a) and (b) may be cross-referenced to information disclosed in accordance with ESRS S1-3.
AR 41 for para. 43(c) (Connectivity with financial statement data)
This figure derives from the monetary amount recognised in the financial statements and it shall be disclosed in accordance with ESRS 1 paragraphs 115 and 116. ‘Fines, penalties and compensation’ refers to those imposed on the undertaking through judicial and non-judicial proceedings.
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