Social (ESG)

The Social (S) dimension of ESG encompasses a company’s relationships with and impacts on its workforce, supply chain workers, customers, communities, and wider society. Under ESRS, social topics are covered across four standards: ESRS S1 (Own Workforce); ESRS S2 (Workers in the Value Chain); ESRS S3 (Affected Communities); and ESRS S4 (Consumers and End-Users). Social key performance indicators include: living wages, gender pay equity, lost-time injury rates, female leadership representation, modern slavery due diligence, supplier audit findings, and community investment. The CSDDD makes supply chain human rights due diligence legally mandatory for large companies.

ESRS S1–S4, Commission Delegated Regulation (EU) 2023/2772; CSDDD (EU) 2024/1760; ILO Core Labour Standards; UN SDG 8 (Decent Work and Economic Growth).

Manufacturers with global supply chains must address social ESG topics across direct and extended supply chains. ESRS S1 requires comprehensive own-workforce metrics (headcount, contracts, training, gender diversity, health and safety). ESRS S2 requires supply chain due diligence disclosures. CSDDD mandates formal HRDD. The RBA Code of Conduct provides a sector-specific framework for electronics and technology supply chain social compliance. Social data collection from suppliers is operationally intensive and should be supported by dedicated software tools.