ESRS S1 - Employee rights and welfare in the workplace

ESRS S1, Own workforce, is one of the European Sustainability Reporting Standards (ESRS) and the main social standard dealing with a company's own employees. It is a topical standard within the framework that supports the Corporate Sustainability Reporting Directive (CSRD), and it requires companies to disclose how they manage the working conditions, equal treatment and fundamental rights of the people who work for them.

Unlike the environmental standards (the ESRS E series), ESRS S1 is not about emissions or carbon footprint. Its focus is people: the workforce on the company's payroll, as well as, in some cases, non-employees who are part of the company's own workforce (for example, agency workers and self-employed people working under the company's direction).

What does ESRS S1 cover?

ESRS S1 asks companies to report on the material impacts, risks and opportunities relating to their own workforce, and on the policies and actions taken to manage them. Typical disclosure areas include:

• Working conditions: secure employment, working time, adequate wages, social dialogue, freedom of association, collective bargaining and work-life balance.
• Equal treatment and opportunities: gender equality and equal pay, training and skills development, employment of people with disabilities, measures against violence and harassment, and diversity.
• Other work-related rights: health and safety, child labour, forced labour, adequate housing and privacy, depending on what is material for the company.

Companies disclose quantitative metrics (such as headcount breakdowns, gender pay gap, training hours or accident rates) together with a narrative explaining their approach.

Who has to apply it?

ESRS S1 applies to companies that fall within the scope of the CSRD and report under the ESRS. Following the 2026 Omnibus simplification (Directive (EU) 2026/470), the CSRD scope was narrowed to large companies exceeding both 1,000 employees and 450 million euros in net turnover, and the ESRS themselves are being revised to cut the number of mandatory datapoints significantly, with the revised standards expected to apply from financial year 2027.

Whether a company reports under ESRS S1, and how much detail it provides, depends on its double materiality analysis: the standard is reported where workforce matters are assessed as material.

Why ESRS S1 matters

A company's relationship with its workforce is increasingly seen as a driver of long-term value. Transparent reporting under ESRS S1 helps organisations:

• Demonstrate respect for labour and human rights, reducing legal and reputational risk.
• Compare and improve working conditions over time using consistent metrics.
• Respond to the expectations of investors, employees and customers around social performance.

Relationship with other standards

ESRS S1 sits alongside the other social standards: ESRS S2 (Workers in the value chain), ESRS S3 (Affected communities) and ESRS S4 (Consumers and end-users). It complements the environmental standards and the cross-cutting requirements of the wider European Sustainability Reporting Standards (ESRS), and connects to broader frameworks such as the Global Reporting Initiative (GRI).

At Manglai we help companies measure their carbon footprint and prepare their sustainability reporting under the CSRD and ESRS. Discover how Manglai can help you.