ESRS Standard
ESRS Standard
1. The objective of this Standard is to set out Disclosure Requirements (DRs) related to workers in the value chain, particularly with respect to the sub-topics specified in paragraph 6 of this Standard. If not all the sub-topics prescribed by this Standard are to be reported following the materiality assessment, paragraph 30 of ESRS 1 General Requirements applies.
2. The sustainability statement shall provide information in relation to ESRS S2 Workers in the Value Chain if this topic relates to material impacts, risks and opportunities. Such information shall cover all the reporting areas listed in paragraph 5 of ESRS 1 General Requirements.
3. The DRs in this Standard complement the provisions in ESRS 2 General Disclosures, which require the undertaking to disclose information about topics related to material impacts, risks and opportunities, in particular:
(a) ESRS 2 SBM 3 Interaction of material impacts, risks and opportunities with strategy and business model, and financial effects; and
(b) ESRS 2 IRO 2 Material impacts, risks and opportunities and disclosure requirements included in the sustainability statement.
4. In this Standard, each DR is introduced by a disclosure objective except for policies, actions and targets, for which the provisions in ESRS 2 GDR-P, GDR-A and GDR-T provide the necessary framing for the relevant DRs.
5. This Standard takes into account the international and European human rights instruments and conventions, including the International Bill of Human Rights; the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises; the International Labour Organization's Declaration on Fundamental Principles and Rights at Work and ILO fundamental conventions; the UN Convention on Persons with Disabilities; the European Convention on Human Rights and the revised European Social Charter; and the Charter of Fundamental Rights of the European Union.
6. This Standard sets out the DRs with respect to the following sub-topics:
(a) working conditions (including adequate wages, work-life balance, working time, secure employment, social protection);
(b) social dialogue, freedom of association, works councils, participation rights of workers and collective bargaining;
(c) health and safety;
(d) training and skills development;
(e) diversity and equal treatment (including gender equality, equal pay for work of equal value, employment and inclusion of people with disabilities, non-discrimination, anti-harassment); and
(f) other labour-related human rights (including child labour, forced labour, privacy, adequate housing and water and sanitation).
7. This Standard covers all workers in the undertaking's upstream and downstream value chain who are or can be materially impacted by the undertaking. Such impacts may be connected with the undertaking's own operations or its upstream and downstream value chain. They include impacts connected to the undertaking's products and services, as well as through its business relationships. This standard covers workers who are not included in the scope of 'own workforce' as set out in ESRS S1 Own Workforce (people who are in an employment relationship with the undertaking ('employees') and people who, for the purposes of ESRS reporting, are called 'non-employees' in the undertaking's own workforce).
8. Examples of workers who could fall within the scope of this Standard are:
(a) workers of outsourced services working in the workplace of the undertaking (for example, third-party catering or security workers);
(b) workers of a supplier contracted by the undertaking who work on the supplier's premises using the supplier's work methods or workers of a 'downstream' entity which purchases goods or services from the undertaking;
(c) workers of an equipment supplier to the undertaking who, at a workplace controlled by the undertaking, perform regular maintenance on the supplier's equipment as stipulated in the contract between the equipment supplier and the undertaking; and
(d) workers deeper in the supply chain who are extracting commodities that are then processed into components that go in the undertaking's products.
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