How does your organization address material risks and opportunities related to affected communities? Please describe the actions planned or underway to mitigate risks—including how you track their effectiveness—and the actions planned or underway to pursue opportunities in this context.
CSRD
This indicator requires you to disclose:
Mitigation of Material Risks:
Describe the actions planned or underway to mitigate material risks for your organization that arise from its impacts and dependencies on affected communities.
Explain how the effectiveness of these actions is tracked in practice (e.g., key performance indicators, community feedback, external audits).
Pursuit of Material Opportunities:
Describe the actions planned or underway to pursue material opportunities in relation to affected communities (e.g., community investment programs, local hiring initiatives, sustainable resource management partnerships).
https://xbrl.efrag.org/e-esrs/esrs-set1-2023.html#d1e36442-3-1
Also in
S3-4 - Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions
- What actions have you taken, planned, or are underway to prevent or mitigate material negative impacts on affected communities, and how have you provided or enabled remedy for actual material impacts? Additionally, please describe any initiatives aimed at delivering positive impacts and explain how you track and assess the effectiveness of these actions and initiatives.
- How does your organization determine and implement the necessary actions in response to actual or potential negative impacts on affected communities? Please explain your process for identifying appropriate actions, your approach to responding to material negative impacts—including those related to land acquisition, planning, construction, operations, or closures, as well as any wider collaborative efforts—and how you ensure that remedy processes are available and effective.
- How does your organization ensure that its own practices avoid causing or contributing to material negative impacts on affected communities? In your answer, please describe your approach in areas such as planning, land acquisition and exploitation, finance, extraction or production of raw materials, natural resource use, and environmental impact management. Additionally, explain how you address tensions between mitigating negative impacts and other business pressures.
- Have any severe human rights issues or incidents connected to affected communities been reported? If so, please provide the relevant details.
- If you evaluate the effectiveness of your actions by setting targets, how do you track progress against these targets in accordance with ESRS 2 MDR-T? Please describe your target-setting process, tracking methods, and performance indicators used to assess the effectiveness of your policies and actions.
- What resources does your organization allocate to manage its material impacts, and how do these resources support effective impact management (e.g., financial, human, technological)?