European Sustainability Reporting Standards (ESRS) Summary: ESRS 3 Affected communities
The objective of this standard is to understand: • How the company affects its local communities through its own operations and its upstream and downstream value chain in terms of impacts • Any actions taken and the result of such actions to prevent, mitigate or remediate impacts on affected communities • The nature, type or extent of the company’s material risks and opportunities related to its impacts and dependencies on affected communities • Financial effects on short-, medium- and long-term time horizons of material risks and opportunities
ESRS 1 General requirements
ESRS 2 General disclosures
Environmental
Climate change
Pollution
Water and marine resources
Biodiversity and ecosystems
Resource use and circular economy
Social
Own workforce
Information to be reported | Number of disclosure requirements (DR): 5
Workers in the value chain
Affected communities
1. Strategy
• Disclosure related to ESRS 2 SBM 2 Interest and views of stakeholders • disclosure related to ESRS 2 SBM 3 material impacts, risks and opportunities and their interaction with strategy and business models • Policies related to affected communities • Processes for engaging with affected communities about impacts • Processes to remediate negative impacts and channels for affected communities to raise concerns • Taking action on material impacts on affected communities, and approaches to mitigating material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions
Consumers or end users
Governance Business conduct
2. Impact, risk and
Subtopics
opportunity management
1. Communities economic, social and cultural rights 2. communities civil and political rights 3. rights of indigenous people
3. Metrics and targets
• Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
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