Sustainability is a complex concept, including key social, environmental and economic dimensions. Under the CSRD (Corporate Sustainability Reporting Directive) and ESRS (European Sustainability Reporting Standards) regulations, European companies are required to report not only on their environmental impact, but also on the social aspects of their activities. Although these requirements are in place, the social side of sustainability can easily be overlooked, which emphasises the need to pay more attention to it.

What is Social Sustainability?

Social sustainability is about the well-being of communities and individuals and ensuring that their needs are met in the long term. It is about equity, diversity, inclusion and quality of life. In essence, it is about how we can organise our society so that everyone has a real chance at a decent and happy life.

To better understand this idea, it is important to see how the social side of sustainability is interconnected with the other sides. For example, the health and safety of a community depends on the available economic resources and the quality of the environment. A healthy economy can generate jobs and a clean and safe environment contributes to people's general well-being.

The Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) set a clear framework for companies operating in the region, with a particular focus on transparency and social responsibility. These regulations impose specific obligations in terms of social sustainability, requiring organisations to adopt more responsible practices and communicate their social impact.

Obligations under the SRDS

One of the key aspects of CSRD is the requirement for detailed social impact reporting. Companies must analyse and report on how their activities influence employees, communities and society at large. This includes assessing impacts on human rights and labour conditions. Organisations must explain the measures they have put in place to prevent abuse, discrimination and ensure respect for fundamental rights.

Companies are also obliged to develop and report clear social sustainability policies. These policies must include specific targets and progress towards them. In addition, social risk management is becoming a priority and organisations must identify supply chain risks and take action to mitigate them.

Obligations under the ESRS

The ESRS complement the framework provided by the CSRD, setting clear requirements for social impact reporting. Companies must address key issues such as diversity and inclusion, and are required to implement policies and measures that promote a diverse and inclusive work environment. In addition, health and safety at work is becoming a priority, and organisations must use specific indicators to assess working conditions and statistics on accidents at work.

Transparency is becoming a fundamental principle and companies must ensure clear and accurate reporting of their social responsibility initiatives. This includes details of contributions to community development and partnerships with non-governmental organisations.

The CSRD and ESRS obligations not only emphasise the importance of corporate social responsibility, but also help build stronger relationships with employees, customers and communities. By adopting a systematic and transparent approach to managing social sustainability, organisations not only meet legal requirements but also strengthen their position in the market. In a world where consumers are becoming increasingly aware of the social impact of their choices, companies that invest in social sustainability will have a significant competitive advantage.