ESRS Standard
ESRS Standard
1 The objective of this standard is to establish disclosure requirements that enable Users of the Sustainability statement to understand material impacts on affected communities in the context of the company's own operations and value chain, including in the context of its products or services, and through its business relationships and the associated Material risks and opportunities, including:
(a) the company's impacts on communities in areas where impacts are most likely and severe, in terms of material positive and negative actual or potential impacts,
b) Any actions taken to prevent, mitigate or ameliorate actual or potential negative impacts and to manage Risks and Opportunities, and the results of these actions,
c) the nature, type and extent of the company's Material risks and Opportunities associated with its Impacts or Dependencies in relation to Affected Communities and how the company is managing them,
d) the financial effects of the material risks and opportunities arising in the short, medium and long term from the company's Impacts and Dependencies on Affected Communities.
2. to achieve the objective, this standard requires an explanation of the general approach the company takes to identify and address all material actual and potential impacts on Affected Communities in relation to the following:
(a) economic, social and cultural rights of communities (e.g. adequate housing, water and sanitation, territorial and security impacts),
b) civil and political rights of communities (e.g. freedom of expression, freedom of assembly, impacts on human rights defenders),
c) specific rights of Indigenous peoples (e.g. Free, Prior and Informed Consent (FPIC), self-determination, cultural rights).
3 In addition, this standard requires an explanation of how such impacts, as well as the company's dependencies on affected communities, may pose material risks or opportunities for the company. For example, negative relationships with Affected Communities may disrupt the company's operations or damage its reputation, while constructive relationships may bring economic benefits, such as stable and conflict-free operations and easier local recruitment.
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Application Requirements (AR)
Application Requirements (AR)
AR 1 The overview of social aspects and human rights issues in paragraph 2 does not imply that all these aspects should be addressed in every disclosure requirement in this standard. Rather, it provides a list of aspects that the company should consider in its materiality analysis in relation to Affected Communities (see ESRS 1 Chapter 3 Double materiality as a basis for disclosing sustainability information and ESRS 2 IRO-1) and disclose as Material Impacts, Risks and Opportunities under this Standard, where applicable.
AR 2 In addition to the topics identified in paragraph 2, the company may also disclose information on other topics that are relevant to material impacts over a shorter time period, such as initiatives related to impacts on communities associated with the company's operations due to extreme and sudden weather conditions.
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