S
Stakeholder Engagement
Definition
Stakeholder engagement is the ongoing process of identifying, mapping, prioritising, and meaningfully interacting with those affected by or with an interest in a company’s activities. Under ESRS 2 (General Disclosures), companies must disclose: their stakeholder engagement activities; how stakeholder input has informed the sustainability strategy and materiality assessment; and how they respond to stakeholder concerns. Under the CSDDD, companies must establish grievance mechanisms allowing workers, communities, and affected persons to raise concerns. GRI 2-29 and 2-30 require disclosures on stakeholder engagement approach.
Source
ESRS 2 (General Disclosures), SBM-2 (Interests and Views of Stakeholders); GRI 2 (General Disclosures 2021), GRI 2-29 and 2-30; CSDDD (EU) 2024/1760, Article 14.
Practical Explanation (Compliance Context)
Stakeholder engagement is both a legal requirement (under CSRD/ESRS and CSDDD) and a source of strategic intelligence on ESG risks and opportunities. Best practice involves a formal stakeholder mapping exercise, regular engagement with priority stakeholders, and documented feedback loops showing how input has shaped sustainability strategy. Companies should establish multi-channel grievance mechanisms accessible to supply chain workers and affected communities.