ESRS S3 Affected Communities
From Open Risk Manual
Definition
ESRS S3 Affected Communities. The objective of this Standard is to specify disclosure requirements which will enable users of the sustainability statements to understand material impacts on affected communities caused or contributed to by the undertaking, as well as, material impacts which are directly linked to the undertaking’s own operations, products or services through its business relationships and its related material risks and opportunities, including:
- how the undertaking affects communities, in areas where risks are most likely to be present and severe, in terms of material positive and negative actual or potential impacts
- any actions taken, and the result of such actions, to prevent, mitigate or remediate actual or potential negative impacts
- the nature, type and extent of the undertaking’s material risks and opportunities related to its impacts and dependencies on affected communities, and how the undertaking manages them
- the financial effects on the undertaking over the short-, medium- and long-term time horizons of material risks and opportunities arising from the undertaking’s impacts and dependencies on affected communities.
Disclosure Requirements
ESRS S3 formulates 5 distinct disclosure requirements.
See Also
The other ESRS Standard in the Social cluster are:
References
- EFRAG, Draft ESRS S3 Affected communities, Nov 2022
