CSRD Essentials: In-Depth look at S1 “Own Workforce”

CSRD Essentials: In-Depth look at S1 “Own Workforce”

CSRD brings rigorous disclosure requirements that are reshaping how companies approach sustainability. Among these, S1 “Own Workforce” stands out for its range and detail, focusing on how businesses manage and report workforce-related data. Recently, SustainLab hosted a webinar with sustainability expert Mikaela Schain, who shared practical strategies for addressing these requirements effectively.

Mikaela, drawing from her extensive experience supporting businesses with their Double Materiality Assessment (DMA), broke down key elements of the S1 standard, explained the challenges companies face, and outlined practical steps to help organizations prepare.

What is S1 “Own Workforce”?

S1 “Own Workforce” under CSRD requires businesses to disclose detailed information about their workforce. This includes metrics like employee turnover, diversity, and training hours, alongside assessments of workforce-related impacts, risks, and opportunities (IROs). The goal is to ensure companies are transparent about how they manage and support their employees, with a focus on long-term sustainability and accountability.

This requirement is not just about collecting data but understanding it within the broader context of sustainability. It asks businesses to:

• Identify and disclose workforce-related IROs as part of a Double Materiality Assessment (DMA).

• Engage stakeholders across departments to provide comprehensive insights.

• Deliver context and comparative analysis to support the reported data.

  
  

Key takeaways from Mikaela Schain

1. Start with Internal Collaboration: Workforce data spans HR, sustainability, and compliance functions. Aligning and engaging these teams early ensures smoother processes and more accurate data collection.

2. Break Down the Process: Breaking S1 requirements into manageable steps—such as creating templates or assigning clear roles—reduces the overwhelm and ensures nothing critical is overlooked.

3. Use the Right Tools: Technology can reduce manual effort and provide clarity. SustainLab’s CSRD module, for example, translates complex requirements into actionable steps, streamlining data collection and reporting.

   
   

Practical Steps for Effective S1 Compliance

Here are actionable recommendations to address the challenges of S1 reporting:

1. Identify Your Data Sources:

   • Review existing data systems, such as HR software or payroll tools, to map where relevant information is stored.

   • Ensure all data points required for S1 are accessible and properly documented.

2. Create Cross-Functional Teams:

   • Engage HR, sustainability managers, and other key stakeholders early to ensure comprehensive coverage.

   • Assign roles for data collection, review, and reporting to avoid bottlenecks.

3. Standardize Data Collection:

   • Develop templates for consistent reporting across departments.

   • Include metrics like workforce composition, training hours, and employee well-being indicators.

4. Establish Clear Timelines:

   • Break down the reporting process into phases with defined deadlines to keep the project on track.

   • Use project management tools to monitor progress and ensure accountability.

5. Invest in Education:

   • Train teams on the nuances of S1 requirements, focusing on how to interpret and report the data accurately.

   • Provide regular updates to keep staff informed about regulatory changes.

6. Engage Stakeholders:

   • Involve employees, management, and external stakeholders to ensure all relevant perspectives are considered.

   • Use workshops to gather feedback and refine your approach.

7. Validate Your Data:

   • Implement quality control processes to ensure accuracy and completeness.

   • Collaborate with external assurance providers to identify and address gaps early.

8. Highlight Progress and Success:

   • Use disclosures to showcase efforts in workforce development, diversity, or well-being initiatives.

   • Focus on how these efforts align with broader sustainability goals.

     
     

Why S1 is more than compliance

S1 compliance is a chance to understand and improve your organization’s approach to workforce management. By addressing these standards thoughtfully, businesses can build trust with stakeholders, demonstrate accountability, and drive meaningful improvements in how they support and engage employees.

Tools to support S1 reporting

SustainLab’s CSRD module is designed to simplify the complexities of S1 compliance. By converting dense regulatory language into clear, actionable steps, it helps businesses:

• Streamline data collection and reporting.

• Assign responsibilities to ensure accountability.

• Provide ongoing support and insights for better decision-making.

  
  

Insights from Mikaela Schain

Mikaela’s expertise emphasizes that compliance doesn’t have to be daunting. With the right preparation, tools, and collaboration, businesses can not only meet S1 requirements but use them as a foundation for stronger workforce strategies and more sustainable operations.

If your organization is preparing for CSRD compliance and needs support, SustainLab’s platform and expert guidance can help. Reach out to learn more about our tools and services.