ESRS Standard
ESRS Standard
13 In accordance with paragraph 48 of ESRS 2 SBM-3, the entity shall disclose the following:
(a) whether and to what extent the actual and potential impacts on its own workforce, in accordance with ESRS 2 IRO-1 Description of procedures for identifying and assessing Material impacts, Risks and Opportunities.
i) arise from or are related to the organization's strategy or business models; and
ii) influence and contribute to the alignment of the entity's strategy and business model; and
b) the relationship between the Material risks and Opportunities arising from Impacts and Dependencies related to its own workforce and its strategy and Business model.
14. in meeting the requirements of paragraph 48, the entity shall disclose whether all individuals in its workforce who may be affected by the entity's material impacts are covered by its disclosures under ESRS 2. These material impacts include impacts related to the company's own activities and Value chain, including through its products or services and through its business relationships. In addition, the company provides the following information:
(a) a brief description of the types of its employees and Non-employees affected by any material impacts of its activities, and whether they are employees, self-employed persons or persons provided by third party companies primarily engaged in the placement and supply of labor,
b) in the case of material negative impacts, whether they are (i) widespread or systemic in the contexts in which the company operates (e.g. Child labour or Forced labour in certain countries or regions outside the EU) or (ii) related to individual incidents (e.g. an industrial accident or oil spill),
c) in the case of material positive impacts, a brief description of the activities giving rise to the positive impacts and the types of the company's employees and Non-employees who are or may be positively affected; the company may also indicate whether the positive impacts occur in specific countries or regions,
d) any material risks and opportunities for the company arising from the impacts and Dependencies related to its Own workforce/own workers,
e) any material impacts on the company's workforce that may result from Transition plans to reduce negative impacts on the environment and to achieve greener and climate neutral operations, including information on the impacts on the company's own workforce caused by the company's plans and actions to reduce carbon emissions in line with international conventions. Impacts, Risks and Opportunities include restructuring and job losses as well as opportunities arising from job creation, retraining or upskilling,
f) Activities where there is a significant risk of Forced labour in relation to the following aspects:
i. Type of activity (e.g. manufacturing operation); or
ii. Countries or geographical areas where risky activities take place,
(g) Activities involving significant risk for Child labour in relation to the following:
i. Type of activity (e.g. manufacturing facility); or
ii. Countries or geographical areas where risky activities take place.
15. in describing the main types of people in the company's workforce who are or may be affected by adverse impacts, the company shall indicate, based on the materiality analysisin ESRS 2 IRO 1, whether and how it has developed an understanding of how people with certain characteristics and those working in certain environments or performing certain activities may be more at risk.
16 The entity shall disclose which of its Material risks and opportunities arising from Impacts on and Dependencies of individuals in its workforce relate to specific groups of individuals (e.g. specific age groups or individuals working in a particular factory or country) rather than the entity's entire workforce (e.g. general wage reductions or training opportunities for all of the entity's workforce).
Application Requirements (AR)
Application Requirements (AR)
AR 6 Own workforce/own workers can be impacted in various ways by the company's strategy or business model. For example, the impacts may be related to the company's value proposition (e.g., providing low-cost products or services or enabling very fast delivery in a way that is critical to workers' rights) or its cost structure and revenue model (e.g., shifting inventory risk to suppliers, with knock-on effects for the workers' rights of the people who work for them).
AR 7 Impacts on the organization's workforce that are related to its strategy or business model may also pose material risks to the organization. Risks arise, for example, if some of the company's workers are exposed to the risk of forced labour and the company imports products into countries where the confiscation of imported goods suspected of having been produced with Forced labour is permitted by law. Opportunities for the company may arise from opportunities for the workers, such as job creation and upskilling as part of a "just transition". Another example related to a pandemic or other severe health crisis relates to the company's potential reliance on temporary workers who have little or no access to healthcare and benefits, potentially creating serious business continuity Risks as workers have no choice but to work despite illness, further exacerbating the spread of disease and causing major Supply chain disruptions. Risks to reputation and business opportunities associated with the exploitation of low-skilled and low-paid workers in geographic areas with minimal protection for them are also increasing due to increased negative media coverage and consumers ' growing emphasis on ethically sourced and sustainable goods.
AR 8 Examples of particular characteristics of individuals in the company's workforce that the company may consider in making disclosures under paragraph 15 relate to young people who are more vulnerable to impacts on their physical and mental development, or to women in a context where women are routinely discriminated against in violation of terms and conditions of employment, or to migrants in an environment where the labor market is poorly regulated and recruitment fees are regularly imposed on workers. For some workers, the nature of the work they are required to do may pose a risk (e.g. those required to handle chemicals or operate certain equipment, or low-paid employees on 'zero hours' contracts).
AR 9. With regard to paragraph 16, material risks could also arise due to the entity's dependence on its workforce where events with a low probability of occurrence but with significant consequences may have financial effects; for example, a global pandemic may have severe impacts on the health of the entity's workforce, resulting in significant disruption to production and distribution. Other examples of Risks related to the company's dependencies on its workforce include a shortage of skilled labor or policy decisions or legislation that impact the company's own operations and workforce/own workers.
Examples from past practice
Examples from past practice
Examples serve only as an indication of how a disclosure requirement has been reported by other companies to date. Audited ESRS reports are not yet available. There is no guarantee of accuracy and completeness.
S1.SBM-3 Impacts on the workforce
The company is committed to ensuring that employees are recognized and valued for their work. This includes attractive working conditions, such as competitive remuneration packages, flexible working hours and secure employment. As part of our materiality assessment, various potential impacts on the workforce were identified:
Working hours (selection)
Employee satisfaction with their working hours plays a central role and includes working time models, mobile working and part-time employment. An excessive workload can have negative impacts on employees' quality of life and health. At the same time, however, the company also recognizes the numerous positive effects of flexible working time models. These help to increase employee satisfaction and offer employees the opportunity to improve their work-life balance. Part-time models are also seen as a valuable tool for making better use of employees' potential, strengthening pension provision and promoting financial security in retirement. In addition, the flexibility of working time models can also have positive effects on health.
Working conditions in higher-risk countries (selection)
Despite the fact that office workplaces are generally considered to be less risky, the company also has branches in countries with a higher risk of human rights violations. These include countries with minimum wages below the subsistence level, restricted freedom of association and a lack of legal protection against discrimination. The rapid and extensive growth of the company at a global level has made it necessary to pay greater attention to these risk areas. The potential negative impacts identified in a global human rights analysis in 2022 relate in particular to the offices and warehouses in these regions and are of a temporary nature.
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