Sustainability measurement & disclosure

ESRS S3

Meaning statusEstablishedSource recordDirect document linkedWhy these are different

Definition

ESRS S3 is the topical European Sustainability Reporting Standard on affected communities, adopted under Commission Delegated Regulation (EU) 2023/2772. It covers material impacts on communities affected by the undertaking's own operations or value chain — including economic, social and cultural rights, land and security-related impacts, and the particular rights of Indigenous peoples, including free, prior and informed consent.

References

GetSunhatESRS standards guide — S3 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

S3 requires disclosure of policies, community-engagement processes, actions and targets, grounded in the UN Guiding Principles. Full application benefits from phase-in provisions to financial years from 2027 for first-wave reporters. It is typically material for extractives, infrastructure, agribusiness and large land-footprint sectors.

How it is used

Used by CSRD reporters to disclose community impacts and remedy; connects to FPIC practice, grievance mechanisms and social licence to operate.

Why it matters

S3 brings community and Indigenous rights impacts into mandatory disclosure, a historically under-reported dimension of corporate impact.