ESRS S4 - Consumers and End Users

What is ESRS S4, Consumers and End Users?

ESRS S4 is one of the topical standards within the European Sustainability Reporting Standards (ESRS), the set of standards drafted by EFRAG and adopted by the European Commission to give effect to the EU Corporate Sustainability Reporting Directive (CSRD). It is the social standard that focuses specifically on consumers and end-users, looking at how a company's products and services affect their well-being, safety and rights.

The aim of ESRS S4 is to give companies a clear framework to identify, measure and report the risks and impacts linked to consumers and end-users, including:

• The safety and quality of products and services.
• The environmental impact of products throughout their life cycle.
• Transparent communication of risks associated with products.
• The promotion of responsible and sustainable consumption.

As with every topical ESRS, the S4 disclosures only apply where consumers and end-users are identified as a material topic in the company's double materiality analysis.

Why ESRS S4 matters in corporate sustainability

ESRS S4 is especially relevant as consumers grow more aware of the social and environmental footprint of what they buy. Surveys by the European Commission and others consistently show that a large and growing share of European consumers take sustainability into account in their purchasing decisions, which raises the bar for transparency and responsibility.

From an environmental angle, ESRS S4 connects to carbon footprint measurement. Companies are expected to consider the impact of their products not only during production but also during use and end-of-life, which often falls within Scope 3 emissions, the indirect emissions across the value chain.

Structure and requirements of ESRS S4

ESRS S4 addresses several aspects of the relationship between companies and the people who use their products. Its key components include:

Identification of impacts, risks and opportunities

Companies identify the social and environmental impacts associated with their products and services, including those related to safety, health and the environment.

Policies, actions and targets

The standard asks companies to describe the policies they have in place for consumers and end-users, the actions taken to prevent and address negative impacts, and any targets set to track progress.

Transparency and communication

Companies provide clear, accessible information about the risks and benefits of their products, supporting more responsible consumption.

Engagement with affected people

ESRS S4 emphasises engaging with consumers and end-users and providing channels through which they can raise concerns, so that impacts are understood from their perspective.

How to comply with ESRS S4

Reporting under ESRS S4 calls for a structured approach that combines impact identification, reliable data and corrective action:

1. Assess materiality: confirm through the double materiality process whether consumers and end-users are a material topic.
2. Measure impacts: put in place systems to measure the relevant social and environmental impacts, including product-related emissions where appropriate.
3. Develop mitigation strategies: improve product safety and energy efficiency, use more sustainable materials and encourage responsible consumption.
4. Strengthen transparency: communicate clearly about product impacts and report progress in the sustainability statement.

The Omnibus simplification and ESRS S4

The EU is simplifying sustainability reporting through its Omnibus package. The substantive Omnibus I directive, Directive (EU) 2026/470, raised the CSRD thresholds so that fewer companies are in scope, while EFRAG is preparing a revised, lighter set of ESRS that cuts the number of mandatory datapoints by more than 60% and is expected to apply from financial year 2027, with voluntary early adoption. Until the revised standards are adopted, the 2023 ESRS, including ESRS S4, remain the legal reference for companies reporting under the CSRD.

Benefits of complying with ESRS S4

• Stronger reputation: a clear commitment to consumers is viewed positively by customers and other stakeholders.
• Lower risk: identifying and mitigating product-related risks reduces the likelihood of safety incidents and legal problems.
• New opportunities: credible sustainability performance can support access to tenders and certain incentives.

How Manglai can help your company with ESRS S4

ESRS S4 is part of CSRD reporting on consumers and end-users, and solid data makes it manageable. At Manglai we help companies measure and manage their environmental data, calculate their carbon footprint across Scopes 1, 2 and 3 and prepare their sustainability reporting in line with the ESRS. Discover how Manglai can help you.