Reporting on social issues

The second ESG pillar addresses social issues related to the impacts, risks and opportunities of an organization’s relationships with individuals and groups. Sustainability reporting considers all stakeholders, with a particular focus on employees and the communities surrounding the company. These social issues are recognized as central by different sets of reporting standards (both voluntary and mandatory), which guide sustainability reporting. Despite the wide-ranging nature of social disclosure, two main topics receive more detailed analysis. First, reporting on the organization’s workforce should offer comprehensive information about both direct em-ployees and individuals engaged through other clearly defined relationships, even when these do not involve traditional subordinate roles. Due to the complexity involved, sustainability re-porting also attempts, albeit with less precision, to include information on workers across the value chain, both upstream and downstream of the company. Second, social disclosure in sus-tainability reporting addresses the engagement of stakeholders beyond the workforce. This in-cludes communities that have been or may be affected by the company’s operations, as well as consumers who may experience direct or indirect impacts from its actions.