EU Sustainability Reporting Standards Include New Worker Transparency Duties

Why should I read this?

The European Commission has adopted the first set of EU Sustainability Reporting Standards (ESRS). The ESRS are mandatory common standards by which in-scope companies must report comparable, consistent and detailed information across environmental, social and governance (ESG) issues.

All companies falling under the Corporate Sustainability Reporting Directive (CSRD) will have to make significant new sustainability disclosures as part of their management reports. The first reporting obligations begin in 2025 (for financial periods beginning on or after 1 January 2024).

Among the new disclosures prescribed by the ESRS is a step-change in workforce and human rights reporting. HR and People Managers in affected companies need to familiarise themselves with the ESRS, to support decision-making on any mandatory worker-related disclosures, and should anticipate an increased focus on people risks, policies, KPIs and action plans