ESRS S1 - Employee rights and welfare in the workplace

What is ESRS S1 – Employee Rights and Well-being?

ESRS S1 – Employee Rights and Well-being is one of the standards developed by the European Union as part of corporate sustainability regulations, under the Corporate Sustainability Reporting Directive (CSRD). This standard focuses on an organization’s own employees, addressing topics such as:  - Working conditions.  - Human and labor rights.  - Employee well-being and workplace safety.  - Environmental impact associated with labor activities.  The main objective of ESRS S1 is to ensure that companies report transparently on how they manage and protect their employees, as well as the environmental and social impact associated with their workforce. This standard is particularly relevant for carbon footprint measurement, as employee activities can significantly contribute to Scope 1, 2, and 3 emissions.

The importance of ESRS S1 in carbon footprint measurement

ESRS S1 – Employee Rights and Well-being plays a crucial role in helping companies identify and manage emissions related to their workforce.

Relation to emission scopes

The ESRS S1 standard is directly linked to the three emission scopes defined by the GHG Protocol:

• Scope 1 emissions: Direct emissions from sources controlled by the company, such as corporate vehicle use or machinery.
• Scope 2 emissions: Indirect emissions from electricity, heating, or cooling consumed by employees.
• Scope 3 emissions: Indirect emissions generated throughout the value chain, such as employee commuting or the use of products and services.

By reporting under ESRS S1, companies can identify emissions sources related to their workforce and develop strategies to reduce them. For example, they can implement telework policies, optimize energy consumption in offices, or encourage the use of sustainable transportation methods.

Key components of ESRS S1 – Own Workforce

The ESRS S1 standard includes several components that companies must consider when reporting on their own workforce. Some key aspects include:

1. Performance indicators: The standard requires companies to collect and report data on key indicators related to working conditions, such as employee satisfaction, equal opportunities, and continuous training. These indicators are not only socially relevant but can also have an indirect environmental impact.
2. Occupational health and safety: Employee well-being is an essential component of ESRS S1. Companies must ensure safe and healthy working conditions, including reducing environmental risks in the workplace. For instance, minimizing exposure to pollutants or ensuring proper waste management can contribute to reducing the carbon footprint.
3. Environmental impact associated with employees: The standard also addresses the environmental impact arising from employee activities, including energy consumption in offices, commuting, and resource use. Companies must measure and report these emissions to comply with ESRS S1 requirements.

European regulations and the role of ESRS S1

ESRS S1 is part of a broader regulatory framework designed by the European Union to promote corporate sustainability. This framework includes the CSRD, which requires companies of certain sizes and sectors to report detailed information about their environmental, social, and governance (ESG) performance.

Implementing ESRS S1 is not only a legal obligation but also an opportunity for companies to demonstrate their commitment to sustainability and enhance their corporate reputation.

How Manglai can assist with ESRS S1 implementation

Implementing ESRS S1 can be challenging, especially for companies lacking the necessary resources or expertise. This is where tools like Manglai’s solutions can make a difference. Manglai offers advanced functionalities to measure, manage, and report carbon footprints, making it easier to comply with ESRS standards.

For example, its AI-powered invoice analysis and classification system allows companies to collect precise data on energy consumption and other factors related to employee activities. This not only simplifies the reporting process but also helps identify opportunities to reduce emissions.