ESRS Standard
ESRS Standard
The term"Policy" is synonymous with the term"Policy", which is used within the German version of the ESRS Standard.
25 The company shall describe the processes it has in place to improve or participate in the improvement of adverse impacts on workers in the value chain associated with the company, and the channels available to workers in the value chain to raise and have concerns addressed.
26 The objective of this disclosure requirement is to provide an understanding of the formal means by which workers in the value chain can directly communicate their concerns and needs to the company and/or by which the company supports the availability of such channels (e.g. Grievance mechanisms) in the workplace of workers in the value chain, and how follow-up is conducted with these workers on issues raised and on the effectiveness of these channels.
27 The company explains the following:
(a) its general approach and procedures for implementing or engaging in remediation where it has caused or contributed to material adverse impacts on workers in the Value chain, including whether and to what extent the company assesses each remediation to be effective,
b) any specific channels through which workers in the Value chain can express their concerns or needs directly to the company for consideration, including whether these channels have been established by the company itself or by third parties,
(c) the procedures by which it supports or requires the availability of such channels in the workplace of workers in the Value chain; and
(d) how issues raised and addressed are tracked and monitored and how the effectiveness of the channels is ensured, including through the involvement of stakeholders who are intended as target users.
28 The company discloses whether and how it determines that workers in the Value chain are aware of and trust these structures or procedures to communicate their concerns or needs and have them reviewed. In addition, the company indicates whether it has policies in place to protect individuals against retaliation. If such information has been disclosed in the ESRS G1-1, the company may refer to this information.
29 If the company is unable to provide the above required information because it has not established a channel for communicating concerns and/or does not support the availability of such a channel at the workplace of workers in the Value chain, it shall indicate this. It may indicate a timeframe within which it intends to implement such channels or procedures.
Application Requirements (AR)
Application Requirements (AR)
AR 21 In fulfilling the requirements of the ESRS S2-3 disclosure requirement, the company may be guided by the content of the United Nations Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises, which focus on remediation and Grievance mechanisms.
AR 22 Channels through which concerns or needs can be raised include Grievance mechanisms, hotlines, trade unions (where workers are unionized), dialogue processes or other means through which workers in the Value chain or their Legitimate representatives can raise concerns or needs regarding Impacts that the company is expected to address. This may include channels provided by the company directly, as well as channels provided by other companies where workers in the Value chain are employed, in addition to other mechanisms the company may use to gain insight into the management of impacts on workers, such as compliance audits. If the company relies solely on information about the existence of such channels provided through its Business relationships to fulfill this requirement, it may disclose this.
AR 23 To provide greater insight into the information covered by the ESRS S2-3 disclosure requirement, the company may explain whether and to what extent workers in the Value chain who may be affected have access to channels at the level of the company for which they work or for which they perform contracted work in relation to each Material Impact.
AR 24 Third party mechanisms may include those operated by government, NGOs, industry associations and other collaborative initiatives. The company may indicate whether these are accessible to all workers potentially or actually affected by the company's Impact materiality, or persons or organizations acting on their behalf or who otherwise have knowledge of the adverse Impacts.
AR 25 With respect to the protection of individuals using the anti-retaliation mechanisms, the company can describe whether it will keep grievances confidential and uphold privacy and data protection rights; and whether workers will be allowed to use the mechanisms anonymously (e.g., through third party representation).
AR 26 If the company indicates the extent to which it has knowledge that workers in the value chain are aware of and trust these channels, the company can provide relevant and reliable data on the effectiveness of these channels from the perspective of workers in the value chain. Examples of sources of information include surveys of workers who have used such channels and their satisfaction with the process and outcomes.
AR 27 When describing the effectiveness of the channels through which workers in the Value chain may raise concerns, the company may be guided by the following questions based on the "Effectiveness criteria for non-judicial grievance mechanisms" as set out in the United Nations Guiding Principles on Business and Human Rights, in particular Principle 31. The following considerations can be applied to individual channels or to a collective system of channels:
(a) Are the channels legitimized by ensuring adequate accountability for fair conduct and building trust among stakeholders?
b) Are the channels known and accessible to Stakeholders?
c) Do the channels have clear and known procedures with expected timelines?
d) Do the channels ensure adequate access for stakeholders to sources of information, advice and expertise?
e) Do the channels provide transparency by making sufficient information available to complainants and, where appropriate, respond to a public interest?
f) Do the outcomes achieved through the channels comply with internationally recognized human rights?
g) Does the company draw lessons from the channels that support continuous learning both in terms of improving the channels and preventing future impacts?
h) Does the company focus on dialog with complainants as a means to find mutually agreeable solutions, rather than unilaterally determining the outcome?
Examples from past practice
Examples from past practice
Examples serve only as an indication of how a disclosure requirement has been stated by other companies to date. Audited ESRS reports are not yet available. There is no guarantee of accuracy and completeness.
S2-3 -Expressing concerns
In 2017, we introduced an online-based whistleblower system that enables our employees as well as customers, suppliers and other third parties worldwide to raise concerns. This platform can be used to report issues such as Corruption, Bribery, violations of human rights and questionable working conditions, conflicts of interest, violations of competition law and other relevant legal violations. The whistleblower system is accessible on our website to enable anonymous reporting. As soon as a report is received, a team of legal experts examines the incident and forwards it to the relevant compliance officers if necessary. The anonymity of the reporting function ensures that individuals can speak out without fear of reprisals.
This article has been machine translated. In case of errors, please contact [email protected].