S2 - Workers in the value chain
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ESRS subtopic
Adequate wages
20
Equal treatment and opportunities for all
20
Other work-related rights
20
Working conditions
20
Name of the IRO
IRO type
Cause
Position in the value chain
Time Horizon
Realization stage
Affected stakeholders
ESRS subtopic
581
Promotion of living wage policies for value chain workers through supplier engagement leading to improved livelihoods
Positive impact
Selection of suppliers committed to paying living wages
Upstream supply chain
Medium term
Potential
Clients
Communities
Suppliers
Adequate wages
582
Support for wage transparency in the value chain
Positive impact
Encouragement of transparent wage reporting by suppliers
Upstream supply chain
Short term
Potential
Clients
Investors
Suppliers
Adequate wages
583
Development of wage improvement programs for value chain workers
Positive impact
Collaboration with suppliers to raise wage standards
Upstream supply chain
Medium term
Potential
Clients
Communities
Suppliers
Adequate wages
584
Collaboration with NGOs for fair wage advocacy in the value chain
Positive impact
Partnerships for best practices in wage fairness
Upstream supply chain
Medium term
Potential
Communities
Suppliers
NGOs
Adequate wages
585
Public recognition of value chain wage leadership
Positive impact
Promotion of achievements in value chain wage management
Upstream supply chain
Short term
Potential
Clients
Investors
Suppliers
Adequate wages
586
Payment of inadequate wages by suppliers
Negative impact
Suppliers pay below legal or living wage
Upstream supply chain
Short term
Actual
Communities
Local authorities
Suppliers
Adequate wages
587
Neglect of wage standards in supplier contracts
Negative impact
Absence of wage clauses in supplier agreements
Upstream supply chain
Short term
Actual
Clients
Investors
Suppliers
Adequate wages
588
Non-compliance with wage regulations by suppliers
Negative impact
Suppliers fail to meet legal wage requirements
Upstream supply chain
Short term
Actual
Investors
Local authorities
Suppliers
Adequate wages
589
Poor communication on supplier wage policies
Negative impact
Lack of transparency on wage management in the value chain
Upstream supply chain
Short term
Actual
Clients
Investors
Suppliers
Adequate wages
590
Neglect of wage fairness in procurement processes
Negative impact
Failure to consider wage standards in supplier selection
Business activities
Short term
Actual
Clients
Employees
Suppliers
Adequate wages
591
Regulatory fines for wage violations in the value chain
Risk
Authorities increase enforcement of wage standards for suppliers
Upstream supply chain
Short term
Potential
Investors
Local authorities
Suppliers
Adequate wages
592
Brand damage from wage controversies in the value chain
Risk
Negative media coverage of supplier wage practices
Upstream supply chain
Short term
Potential
Clients
Investors
Suppliers
Adequate wages
593
Loss of contracts due to poor wage practices in the value chain
Risk
Clients require proof of wage management in the value chain
Upstream supply chain
Medium term
Potential
Clients
Investors
Suppliers
Adequate wages
594
Increased costs from supplier wage compliance requirements
Risk
Need for new investments in supplier wage management
Upstream supply chain
Short term
Potential
Clients
Investors
Suppliers
Adequate wages
595
Legal actions by stakeholders over wage issues in the value chain
Risk
Stakeholders file lawsuits for wage violations by suppliers
Upstream supply chain
Short term
Potential
Clients
Investors
Suppliers
Adequate wages
596
Development of “Fair Wage Value Chain” certifications
Opportunity
Certification for best practices in supplier wage management
Upstream supply chain
Short term
Potential
Clients
Investors
Suppliers
Adequate wages
597
Access to funding for value chain wage improvement projects
Opportunity
Grants/subsidies for wage management initiatives with suppliers
Upstream supply chain
Short term
Potential
Investors
Local authorities
Adequate wages
598
Partnerships with NGOs for value chain wage management innovation
Opportunity
Joint development of wage management solutions with NGOs
Upstream supply chain
Medium term
Potential
Communities
Suppliers
NGOs
Adequate wages
599
Expansion into markets valuing fair wage value chains
Opportunity
Clients demanding certified fair wage suppliers
Downstream supply chain
Medium term
Potential
Clients
Investors
Suppliers
Adequate wages
600
Brand enhancement through value chain wage management leadership
Opportunity
Recognition for sector-leading wage management in the value chain
Upstream supply chain
Short term
Potential
Clients
Investors
Suppliers
Adequate wages
601
Promotion of diversity and inclusion policies for value chain workers through supplier engagement leading to increased equality
Positive impact
Selection of suppliers with diversity and inclusion programs
Upstream supply chain
Medium term
Potential
Clients
Communities
Suppliers
Equal treatment and opportunities for all
602
Support for gender equality in the value chain
Positive impact
Encouragement of gender equality targets by suppliers
Upstream supply chain
Short term
Potential
Clients
Investors
Suppliers
Equal treatment and opportunities for all
603
Development of anti-discrimination guidelines for suppliers
Positive impact
Implementation of protocols to prevent discrimination in the value chain
Upstream supply chain
Short term
Potential
Clients
Communities
Suppliers
Equal treatment and opportunities for all
604
Collaboration with NGOs for equality advocacy in the value chain
Positive impact
Partnerships for best practices in value chain equality
Upstream supply chain
Medium term
Potential
Communities
Suppliers
NGOs
Equal treatment and opportunities for all
605
Public recognition of equality leadership in the value chain
Positive impact
Promotion of achievements in value chain equality
Upstream supply chain
Short term
Potential
Clients
Investors
Suppliers
Equal treatment and opportunities for all
606
Discriminatory practices by suppliers
Negative impact
Bias in hiring or advancement decisions by suppliers
Upstream supply chain
Short term
Actual
Clients
Communities
Suppliers
Equal treatment and opportunities for all
607
Neglect of inclusion in supplier management
Negative impact
Failure to consider diversity in supplier selection
Upstream supply chain
Short term
Actual
Clients
Investors
Suppliers
Equal treatment and opportunities for all
608
Non-compliance with equality regulations by suppliers
Negative impact
Suppliers fail to meet legal requirements for equal treatment
Upstream supply chain
Short term
Actual
Investors
Local authorities
Suppliers
Equal treatment and opportunities for all
609
Poor communication on diversity and inclusion in the value chain
Negative impact
Lack of transparency on equality initiatives by suppliers
Upstream supply chain
Short term
Actual
Clients
Investors
Suppliers
Equal treatment and opportunities for all
610
Neglect of diversity criteria in procurement
Negative impact
Absence of diversity standards in supplier agreements
Business activities
Short term
Actual
Clients
Employees
Suppliers
Equal treatment and opportunities for all
611
Regulatory fines for equality violations in the value chain
Risk
Authorities increase enforcement of equality standards for suppliers
Upstream supply chain
Short term
Potential
Investors
Local authorities
Suppliers
Equal treatment and opportunities for all
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