The Corporate Sustainability Reporting Directive introduced new regulations that will soon require a broad group of companies in the European Union to report on ESG. In terms of social indicators, the HR department plays a key role, tracking, analyzing, and reporting on the organization's human resources practices that impact sustainable development goals.
ESG reporting in this area, with the involvement of HR, primarily serves to ensure accountability in the management of a given company. These departments address issues directly affecting employees and their remuneration, and consequently, create a workplace free from discrimination and harassment, promote integrity within the organization, and develop recruitment programs consistent with equal opportunity principles. HR is also responsible for developing policies and programs that support ethnic, gender, age, and disability diversity. They also focus on providing training and support programs for employees, developing their skills, and promoting diverse career paths. Ensuring employee well-being and health, as well as promoting work-life balance, seems essential for proper social reporting. ESG reporting in this area also includes indicators regarding employee engagement, turnover, employee satisfaction surveys, and data on occupational safety and accidents. Furthermore, HR is responsible for communication activities. Employees in this department often collaborate with the management board and other departments of the organization in developing sustainable development policies.
The involvement of the human resources (HR) department therefore plays a paramount role in sustainable and responsible corporate management, and modern companies increasingly recognize the importance of ESG reporting in building customer trust. In this regard, the HR department sets ethical and social standards within the organization, positively impacting its image and long-term performance, and therefore must be involved in the ESG reporting process.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of February 7, 2024.
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