Disclosure Requirement S3-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

39. The undertaking shall disclose the time-bound and outcome-oriented targets it may have set related to:

    • (a) reducing negative impacts on affected communities; and/or

    • (b) advancing positive impacts on affected communities; and/or

    • (c) managing material risks and opportunities related to affected communities.

40. The objective of this Disclosure Requirement is to enable an understanding of the extent to which the undertaking is using time-bound and outcome-oriented targets to drive and measure its progress in addressing material negative impacts, and/or advancing positive impacts on affected communities, and/or in managing material risks and opportunities related to affected communities.

41. The summarised description of the targets to manage its material impacts, risks and opportunities related to affected communities shall contain the information requirements defined in ESRS 2 MDR-T.

42. The undertaking shall disclose the process for setting the targets, including whether and how the undertaking engaged directly with affected communities, their legitimate representatives, or with credible proxies that have insight into their situation in:

    • (a) setting any such targets;

    • (b) tracking the undertaking’s performance against them; and

    • (c) identifying, if any, lessons or improvements as a result of the undertaking’s performance.