ESRS Standard
ESRS Standard
Targets of this Standard
1. the objective of this standard is to establish disclosure requirements that enable Users of the Sustainability statement to understand the company's material impacts on its own workforce/own workers and the related Material risks and opportunities, for example:
(a) the company's material positive and negative actual or potential impacts on its own workforce/own workers,
b) Any actions taken to prevent, mitigate or ameliorate actual or potential negative Impacts and to manage Risks and Opportunities, and the results of those actions,
c) the nature, type and extent of the company's Material risks and opportunities associated with its Impacts or Dependencies in relation to its Own workforce/own workers and how the company manages them; and
d) the financial effects in the short, medium and long term of the material risks and opportunities arising from the company's Impacts and Dependencies on its Own workforce/own workers.
Explanation of the general approach
2. to achieve the objective, this standard also requires an explanation of the general approach the company takes to identify and address all material actual and potential impacts on its own workforce/own workers in relation to the following social factors or aspects, including human rights:
(a) working conditions, including the following:
i. Safe employment,
ii. Working hours,
iii. Adequate wage,
iv. social dialogue,
v. Freedom of association, existence of works councils and workers' rights to information, consultation and co-determination,
vi. Collective bargaining, including the proportion of the company's workforce covered by collective agreements,
vii. Work-life balance, and
viii. Health and safety.
b) Equal treatment and Equal opportunities for all, including the following:
i. Gender equality and equal Wage for equal work,
ii. Training and skills development,
iii. Employment and inclusion of Persons with disabilities,
iv. Actions against violence and Harassment in the workplace, and
v. Diversity.
c) Other employment-related rights, including in relation to:
i. Child labour,
ii. Forced labour,
iii. adequate housing; and
iv. Privacy.
For application requirements for 2. see AR 1 and AR 2
Explanatory notes on labor
3 In addition, this standard requires an explanation of how such impacts and the company's reliance on its own workforce/own workers can create Material risks or Opportunities for the company. For example, in terms of Equal opportunities, Discrimination against women in hiring and promotion may limit the company's access to skilled labor and damage its reputation. Conversely, policies to increase the proportion of women in the workforce and in senior management can have positive impacts, such as increasing the pool of qualified workers and improving the company's reputation.
4. this standard covers the workforce of an enterprise, which includes both people who are employed by the enterprise ('employees') and non-employees, who are either people who have a contract with the enterprise to provide labor services ('self-employed') or people who are supplied by enterprises primarily engaged in the 'supply and leasing of labor' (NACE code N78). Examples of who belongs to the workforce of an enterprise can be found in Application Requirement 3. The information to be provided in relation to Non-employees does not affect their status under applicable labor law.
5 This standard does not apply to workers upstream or downstream in the company's Value chain; these categories of workers are addressed in ESRS S2 Workers in the Value Chain.
6 The standard requires entities to describe their Own workforce/own workers, including the materiality of their employees and Non-employees working for them. This description provides Users with an understanding of the structure of the entity's workforce and helps to contextualize the information provided in other disclosures.
For labor application requirements, see AR 3
7. The standard should also provide Users with an understanding of the extent to which the company complies with international and European human rights instruments and conventions, including the International Bill of Human Rights, the United Nations Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises, the International Labor Organization's Declaration on Fundamental Principles and Rights at Work and the ILO Fundamental Conventions, the United Nations Convention on the Rights of Persons with disabilities, the European Convention on Human Rights, the revised European Social Charter, the Charter of Fundamental Rights of the European Union, EU policy priorities under the European Pillar of Social Rights and EU legislation, including the EU acquis in the field of labor law.
Interaction with other ESRS
8 This standard should be read in conjunction with ESRS 1 General Requirements and ESRS 2 General Disclosures.
9 This standard should be read in conjunction with ESRS S2 Workers in the Value chain, ESRS S3 Affected Communities and ESRS S4 Consumers and End-users.
10. reporting under this standard shall be consistent, coherent and, where appropriate, clearly linked to reporting on the organization's workforce in the Value chain under ESRS S2 to ensure effective reporting.
Application Requirements (AR)
Application Requirements (AR)
AR 1 In addition to the topics identified in paragraph 2, the company may also consider disclosing information on other topics relevant to Impact materiality over a shorter time period, such as initiatives related to the health and safety of the company's workforce during a pandemic.
AR 2 The overview of social aspects in paragraph 2 does not imply that all of these aspects should be addressed in every disclosure requirement in this standard. Rather, it provides a list of aspects derived from the reporting requirements set out in Directive 2013/34/EU that the company is required to consider in the ESRS 2 materiality analysis in relation to Own workforce/own workers and subsequently disclose as Material Impacts, Risks and Opportunities under this Standard, where applicable.
AR 3 Individuals covered by the term "the entity's workforce" include the following:
(a) Contractors (self-employed) within the organization' s workforce include, for example:
i. Contractors engaged by the company to perform work that would otherwise be performed by an Employee,
ii. Contractors engaged by the enterprise to perform work in a public area (e.g. on a road),
iii. Contractors engaged by the company to carry out work/services directly at the workplace of a client of the company.
b) Persons employed by a third party who are engaged in the "placement and hiring out of labor" include persons who perform the same work as Employees, such as:
i. Persons who fill in when Employee is temporarily unable to work (due to illness, vacation, parental leave, etc.),
ii. Persons who perform work in addition to regular employees,
iii. Persons who are temporarily posted from another EU Member State to work for the company ("posted workers").
This article has been machine translated. In case of errors, please contact [email protected].