Due diligence is well integrated into the ESRS, which makes the ESRS largely compatible with international standards – the UN Guiding Principles on Business and Human rights and the OECD Guidelines for Multinational Enterprises.
Given that the reporting standards are comprehensive and long, it can however be hard to understand exactly how the architecture of the standards align with due diligence. At a first glance, it may appear that the due diligence requirements are scattered or fragmented across the standards. How may a company report on its due diligence efforts with integrity and consistency, yet still in accordance with the ESRS structure?
We discussed this during our webinar held on the 30th of May 2023 by Sandra Atler, the Director of the Enact Business and Human Rights Practice Group, and moderated by Anne Manschot, Head of Enact the Netherlands and a senior advisor at Enact. During the webinar we went through how to understand the due diligence components of the ESRS – from General Requirements (ESRS 1) and General Disclosures (ESRS 2) to the Social topical standards; Own Workforce (ESRS S1), Value Chain Workers (ESRS S2), Local Communities (ESRS S3), Consumers and End-Users (ESRS S4). We also looked at disclosure requirements on Governance, Strategy, Impact, Risk, Opportunity Management, as well as disclosure requirements for each (social) material sustainability matter; Policy, Targets, Action, Metrics.
In case you missed the live webinar session, you can watch the recording below:
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