Questions & Answers
In paragraph 43 of ESRS S1 (‘the undertaking shall disclose what resources are allocated to the management of its material impacts, with information that allows users to gain an understanding of how the material impacts are managed’), it is unclear whether ‘material impacts’ is meant to cover all material impacts or only ‘own workforce’ material impacts.
- Resources to manage material impacts
Background
The original question received has been reworded to the above to be clearer. The original question was: ‘When mentioning ‘material impacts’ in paragraph 43 of ESRS S1-4, it is unclear if you mean ‘all’ material impacts or ‘own workforce’ material impacts.’
ESRS S1 paragraph 1 clarifies the objective of ESRS S1, specifying that Disclosure Requirements in this topical standard will ‘enable users of the sustainability statement to understand the undertaking’s material impacts on its own workforce.’
ESRS S1-4 paragraph 43 states: ‘The undertaking shall disclose what resources are allocated to the management of its material impacts, with information that allows users to gain an understanding of how the material impacts are managed.’
ESRS S1 paragraph AR 48 further explains: ‘When disclosing the resources allocated to the management of material impacts, the undertaking may explain which internal functions are involved in managing the impacts and what types of action they take to address negative, and advance positive, impacts.’
Answer
‘Resources allocated to the management of material impacts’ refers only to the disclosure of resources allocated to the management of material matters pertaining to the ‘own workforce’ topic.
As paragraph 43 of ESRS S1-4 is part of the topical standard on ‘own workforce’, ‘material impacts’ in that paragraph is intended to refer specifically to material impacts on own workforce.
Relations
Paragraph | Content |
|---|---|
When disclosing the resources allocated to the management of material impacts, the undertaking may explain which internal functions are involved in managing the impacts and what types of action they take to address negative and advance positive impacts. | |
The undertaking shall disclose what resources are allocated to the management of its material impacts, with information that allows users to gain an understanding of how the material impacts are managed. | |
The objective of this Standard is to specify disclosure requirements which will enable users of the sustainability statement to understand the undertaking’s material impacts on its own workforce, as well as related material risks and opportunities, including: | |
When disclosing the resources allocated to the management of material impacts, the undertaking may explain which internal functions are involved in managing the impacts and what types of action they take to address negative and advance positive impacts. | |
The undertaking shall disclose what resources are allocated to the management of its material impacts, with information that allows users to gain an understanding of how the material impacts are managed. | |
The objective of this Standard is to specify disclosure requirements which will enable users of the sustainability statement to understand the undertaking’s material impacts on its own workforce, as well as related material risks and opportunities, including: | |
When disclosing the resources allocated to the management of material impacts, the undertaking may explain which internal functions are involved in managing the impacts and what types of action they take to address negative and advance positive impacts. | |
The objective of this Standard is to specify disclosure requirements which will enable users of the sustainability statement to understand the undertaking’s material impacts on its own workforce, as well as related material risks and opportunities, including: | |
The undertaking shall disclose what resources are allocated to the management of its material impacts, with information that allows users to gain an understanding of how the material impacts are managed. | |
When disclosing the resources allocated to the management of material impacts, the undertaking may explain which internal functions are involved in managing the impacts and what types of action they take to address negative and advance positive impacts. |