ESRS Standard
ESRS Standard
15. The undertaking shall describe the key actions and resources used to manage its material positive and negative impacts, risks and opportunities related to affected communities in accordance with ESRS 2 GDR-A.
16. In relation to material negative impacts on affected communities, 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 affected communities, including its approach in situations where tensions arise between such actions and other business pressures (for example, its practices in relation to planning and land acquisition or in relation to the exploitation and financing of raw materials); and
(b) how it tracks and assesses the effectiveness of these actions in delivering outcomes for affected communities. 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.
17. For the sub-topics assessed as material for this Standard, subject to the relevant privacy regulation, the undertaking shall disclose human rights incidents connected to affected communities identified in the reporting period.
Application Requirements (AR)
Application Requirements (AR)
AR 5 for para. 16 (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 multi-stakeholder and/or industry initiatives.
AR 6 for para. 16 (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 affected communities that arise from the transition to a low-carbon and climate-resilient economy. For example, innovation and restructuring can lead to mine closures or increased mining of minerals that are needed for the transition to a sustainable economy.
AR 7 for para. 17 (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), Art. 29b (2) (b) (iii). These incidents are understood as the substantiated instances registered by the undertaking of:
(a) judicial and non-judicial proceedings (such as cases before domestic courts and tribunals, mediation, 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 8 for para. 17 (Human rights incidents)
When determining the human rights incidents connected to affected communities, the undertaking shall consider any legal disputes related to land rights and to the free, prior and informed consent (FPIC) of indigenous peoples.
AR 9 for para. 17 (Human rights incidents)
When applying the filter of information materiality (paragraph 23 of ESRS 1 General Requirements) to the information about incidents referred to under paragraph 17, the undertaking's assessment is primarily based on the severity of the impacts on affected communities.
AR 10 for para. 17 (Human rights incidents)
The undertaking is not expected to disclose a list of each human rights incident, and may aggregate the information provided, such as by relevant types of incidents and/or communities affected.
AR 11 for para. 17 (Cross-referencing)
If the undertaking considers that changes in human rights incidents are relevant for understanding the effectiveness and availability of channels to raise concerns or needs, including grievance mechanisms, it may cross-reference paragraph 17 and paragraph 13.
The way the undertaking has addressed or is addressing human rights incidents may be cross-referenced to information disclosed in accordance with paragraph 16.
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