Are all affected communities that are likely to be materially impacted by your organization—including through your operations, value chain, products/services, or business relationships—included in your disclosure under ESRS 2? If so, please provide: A brief description of the types of affected communities impacted by your operations or value chain, specifying whether they are: Communities near your operating sites, factories, or facilities, or more remote communities affected by these activities (e.g., downstream water pollution); Communities along your value chain (e.g., those affected by suppliers’ operations or logistics/distribution activities); Communities at one or both endpoints of the value chain (e.g., extraction sites, waste/recycling areas); Indigenous communities. For material negative impacts, indicate whether they are widespread/systemic (e.g., marginalized populations facing health/environmental risks) or related to individual incidents (e.g., toxic waste spills, community protests met with violence). Include any impacts linked to the transition to greener, climate-neutral operations (e.g., mine closures, increased mineral extraction, solar panel production). For material positive impacts, describe the activities driving these benefits (e.g., capacity-building for alternative livelihoods) and the communities affected, including any regional specifics if applicable. Any material risks and opportunities for your business arising from these impacts and dependencies on affected communities.
CSRD
This indicator requires you to disclose whether all affected communities likely to be materially impacted by your organization—including impacts connected to your operations, value chain, products, services, and business relationships—are included in the scope of your ESRS 2 disclosure. Additionally, you must provide:
Scope of Affected Communities:
Confirm whether all materially impacted affected communities are included in your disclosure.
Description of Impacted Community Types:
Provide a brief description of the types of affected communities subject to material impacts, specifying whether they are:
(i) Communities near operational sites (e.g., factories, facilities, or physical operations) or remote communities impacted by these sites (e.g., downstream water pollution).
(ii) Communities along the value chain (e.g., those affected by suppliers' operations, logistics, or distribution providers).
(iii) Communities at value chain endpoints (e.g., near resource extraction sites, waste disposal, or recycling facilities).
(iv) Indigenous communities impacted by operations.
Nature of Material Negative Impacts:
Indicate whether material negative impacts on affected communities are:
(i) Widespread or systemic (e.g., marginalized populations suffering health and quality-of-life impacts in industrialized areas).
(ii) Related to specific incidents, either:
In your own operations (e.g., toxic waste spill affecting drinking water).
In a specific business relationship (e.g., a peaceful protest met with a violent response by security forces).
Consider potential negative impacts from the transition to greener and climate-neutral operations, such as:
Innovation and restructuring effects on local employment.
Closure of mines or increased extraction of minerals needed for sustainability technologies (e.g., solar panels).
Material Positive Impacts:
Provide a brief description of activities resulting in positive impacts on affected communities (e.g., capacity-building initiatives that create new local livelihood opportunities).
Specify the types of communities positively affected and whether these benefits occur in particular countries or regions.
Material Risks and Opportunities:
Disclose any material risks and opportunities for your business arising from impacts and dependencies on affected communities.
https://xbrl.efrag.org/e-esrs/esrs-set1-2023.html#d1e34003-3-1