Sustainability measurement & disclosure

ESRS S2

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Definition

ESRS S2 is the topical European Sustainability Reporting Standard on workers in the value chain, adopted under Commission Delegated Regulation (EU) 2023/2772. It covers material impacts on workers outside the undertaking's own workforce — in upstream and downstream value chains — including working conditions, forced and child labour, health and safety, and adequate wages at suppliers.

References

GetSunhatESRS standards guide — S2 scope, phase-in to FY2027

standard scope, phase-in

Taylor WessingESRS under the Omnibus package — legal basis and set structure

Delegated Regulation 2023/2772, first set

Overview

What it means

S2 requires disclosure of policies, engagement processes, actions and targets concerning value-chain workers, closely tracking the UN Guiding Principles on Business and Human Rights and due-diligence legislation. Full application benefits from phase-in provisions to financial years from 2027 for first-wave reporters.

How it is used

Used by CSRD reporters with material supply-chain labour risks — notably apparel, electronics, agriculture and extractives; dovetails with CSDDD obligations.

Why it matters

S2 makes supply-chain labour conditions a regulated disclosure object, operationalising human-rights due diligence in reporting.