ESG - S in the spotlight
European legislation around sustainability reporting (CSRD) aims to share information about a company's ESG performance. ESG includes the 3 pillars "Environmental", "Social" and "Governance." Under ESG, companies can explain their environmental, people and good governance efforts.
In this article, we take a closer look at the social (S) pillar, which consists of 4 main themes:
- Own employees
- The value chain
- Clients
- Communities
For many, the link between sustainability and the sustainable management of people is not yet immediately made. Yet this pillar of ESG is gaining in importance. Many sectors today are facing a tight labor market in which more and more attention is being paid to the social aspect. Just think about the well-being of your employees, increasing their personal involvement, creating a safe working environment... So don't limit your sustainable efforts to the climate alone.
Report on your impact on people
CSRD requires reporting companies to extend their sustainability policies beyond their company itself. For example, not only does it require reporting on the impact of business activities on your own employees, but it even requires reporting on the potential impact your business causes on the community. Your sustainability report tells about the impact on 4 groups:
1 - The impact on own staff should be discussed most thoroughly. Among other things, you state how you are committed to the safety of your employees, how you ensure the good health of your employees and how you ensure their training.
2 - The impact on employees of companies along the value chain is a second group you should report on. Do your suppliers provide safe working conditions for their employees?
3 - Your customers may also be impacted by your business. For example, if you make products that could potentially have adverse effects on your customer's health, you should report how you guard against this.
4 - Even the impact on the community you need to identify. If your plant pollutes the air or soil for local residents, they will be negatively impacted. In your sustainability report, you should list the potential risks your operations cause.
Below we would like to provide you with a diagram with some examples on the different types of people you need to report your impact on. The examples given are not exhaustive.
How does Titeca Pro Accountants & Experts make a sustainable commitment to people?
The social pillar within ESG encompasses a wide range of social responsibilities. The following interview illustrates how one of the social sustainability aspects "employee welfare" is taking concrete shape within the organization.
"We believe strongly in the potential of our people. They are our most valuable working capital, and by investing in their well-being, we show how much we value them," explains general manager Lizbeth Nowé from.
Are you like us all the way pro sustainability? Then check out our sustainability page or enroll now in our Titeca Pro Academy.
Do not hesitate to contact us here contact us with questions.
Would you like to proactively address this issue so that you too can make an impact to create a more sustainable world? Then make an appointment with our pro experts here!
