ESRS S3 Affected Communities
Comprehensive ESRS S3-compliant capture of impacts on affected communities — from economic, social and cultural rights to civil and political rights and the rights of indigenous peoples. FPIC processes, community policies, remediation measures and human rights incidents are documented in a structured, audit-ready way.
ESRS S3 Affected Communities
Communities, FPIC and remediation in one module
The S3 module guides you through all disclosure requirements on affected communities — from the double materiality assessment with the rights of indigenous peoples sub-topic through community policies and engagement processes to targets, measures and human rights incidents.
Double Materiality Assessment
Three sub-topic areas – economic, social and cultural rights, civil and political rights, and rights of indigenous peoples. Each impact and the risk or opportunity it creates is one IRO, assessed from both sides – impact on people and the environment and financial effect – scored against the materiality threshold of the reporting period (default 12.5 of 25) or decided by written reasoning. "Discover IROs with AI" suggests entries from your own records but does not score them. Sub-topic areas that clearly do not apply are defined not material, with reasoning. A materiality matrix with chart export, a completeness check and activation, which switches on the disclosures of the material areas, are included; a finalised CSRD reporting boundary is the prerequisite. A flag on each IRO records whether indigenous peoples are affected; in the rights of indigenous peoples area it is set automatically.
Community Policies
Six policy types including land rights and resettlement as well as indigenous peoples — each with sub-topic coverage, community coverage, an indigenous peoples coverage flag, value chain reference, availability and review dates. The lifecycle runs Draft to Active to Archived, complemented by a coverage view, statements of absence and a completeness check.
Engagement and Remediation Measures
One disclosure per reporting period states whether a formal engagement process exists — otherwise with justification and planned time horizon. Documented are the engagement approach, the procedure for vulnerable groups, the inclusion of indigenous peoples with a description of the FPIC approach, the consultation on engagement modalities, and the existence of a grievance mechanism with channel description, effectiveness assessment and remediation approach.
Targets and Measures
Targets absolute or relative, quantitative or qualitative — with eight target metrics including grievances resolved, FPIC coverage, community investments and resettlements completed. Automatic progress calculation provides expected value, progress share and trajectory status, and is re-determined when linked measures change. Measures such as resettlement support and community investments are kept with evidence documents; AI-supported target suggestions and formulation support assist the drafting.
Human Rights Incidents
Incidents are recorded with type — including land-related displacement, impacts on water and sanitation, security-related incidents, violence against human rights defenders and FPIC violation — affected community, sub-topic, date of identification, description and ongoing proceedings. The status is published or archived, with archiving requiring a justification. For incident-free reporting periods a confirmation can be filed, with the option to withdraw it.
FAQ
Frequently asked questions
The rights of indigenous peoples are one of three sub-topics in the materiality assessment, and every matter can be flagged as affecting indigenous peoples. In the disclosure on engagement and remediation you describe your approach to free, prior and informed consent (FPIC). Targets can measure FPIC coverage, and FPIC violations are a separate incident type.
For each reporting period there is one disclosure stating whether a formal engagement process exists, and if not, why and by when one is planned. It also covers your engagement approach, how vulnerable groups are handled, consultation on the engagement arrangements, whether a grievance mechanism exists with a description of its channels and an effectiveness assessment, and your approach to remediation.
Among others, land-related displacement, impacts on water and sanitation, security-related incidents, violence against human rights defenders and FPIC violations, each with the affected community, sub-topic, date identified and ongoing proceedings. If there were no confirmed incidents in the reporting period, you confirm this explicitly; the confirmation can be withdrawn.
Targets can be absolute or relative, quantitative or qualitative, with eight target metrics including resolved grievances, FPIC coverage, community investment and completed resettlements. Progress is calculated automatically with expected value and trajectory status and recalculated when linked actions change. The AI suggests targets and helps with the wording; your team decides.
Six policy types are available, including land rights and resettlement and indigenous peoples, each with sub-topic and community coverage, value chain scope and review dates. A coverage view shows which material sub-topics are covered. If a policy is missing, you document this in a justified statement of absence rather than leaving an unexplained gap.
No. You answer the overarching human rights policy once for the whole company under governance and oversight. It is shown read-only in the chapters own workforce, workers in the value chain, affected communities and consumers and end-users, and the related reports draw on it. The answers of the governance disclosure can also be carried over from the previous reporting period.
Terms on this page, briefly explained
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