ESRS E1 - Climate change
Topic | Climate change |
Sub-topic |
|
Sub-sub-topic |
|
IRO | Impact - actual negative |
Location | Own operations |
Time-frame | Medium-term |
Title | High energy consumption of data centres in the IT industry impacts the environment |
Example | Software and IT services companies, with their extensive use of data centres, contribute significantly to greenhouse gas emissions due to high energy consumption. For instance, Microsoft’s data centres have a substantial carbon footprint due to their reliance on non-renewable energy sources. This not only contributes to climate change but also exposes the company to financial risks associated with rising energy costs and potential carbon taxes. |
Reference | Microsoft Sustainability Report, 2023 |
ESRS E5 Circular economy
Topic | Circular economy |
Sub-topic | Resource outflows related to products and services |
Sub-sub-topic |
|
IRO | Opportunity |
Location | Own operations, downstream |
Time-frame | Long-term |
Title | Circular economy practices reduce waste. |
Example | Circular economy practices in software and IT can extend product life cycles, reduce the amount of products going to landfill, and invite better customer engagement. Microsoft is investing in recycling and refurbishment programs to support a circular economy. |
Reference | Microsoft Sustainability Report, 2023 |
ESRS S1 - Own workforce
Topic | Own workforce |
Sub-topic | Equal treatment and opportunities for all |
Sub-sub-topic | Gender equality and pay for work of equal value |
IRO | Impact - potential positive |
Location | Own operations |
Time-frame | Medium-term |
Title | Gender equality encourages inspiration and motivation |
Example | Promoting gender equality can lead to a more balanced and innovative workforce, as well as inspiring younger generations. Google has initiatives aimed at increasing the representation of women in technology roles. |
Reference | Google Sustainability Report, 2023 |
Topic | Own workforce |
Sub-topic | Equal treatment and opportunities for all |
Sub-sub-topic |
|
IRO | Risk |
Location | Own operations |
Time-frame | Short-term |
Title | Bias in hiring practices can result in reputational damage. |
Example | Unfair hiring practices can lead to reputational damage. Microsoft is implementing fair hiring practices to ensure equal opportunities for all candidates. |
Reference | Microsoft Sustainability Report, 2023 |
ESRS S2 - Workers in the value chain
Topic | Workers in the value chain |
Sub-topic | Other work related rights |
Sub-sub-topic |
|
IRO | Impact - actual negative |
Location | Upstream and downstream |
Time-frame | Long-term |
Title | Violation of human rights in the supply chain |
Example | The risk assessment revealed the violation of human rights according to the Universal Declaration of Human Rights. Netcompany have taken action to send an engagement letter to the customer and supplier, requesting additional details on their strategies for mitigating and remedying the situation. |
Reference | Netcompany, 2023 |
Topic | Workers in the value chain |
Sub-topic | Other work-related rights |
Sub-sub-topic |
|
IRO | Impact - actual negative |
Location | Downstream |
Time-frame | Long-term |
Title | Violation of national corruption laws in the supply chain |
Example | The risk assessment revealed the violation of national corruption laws. Netcompany has requested an engagement letter from the customer requesting additional details on their strategies for mitigating and remedying the situation. |
Reference | Netcompany, 2023 |
ESRS S4 - Consumers and end-users
Topic | Consumers and end-users |
Sub-topic | Information-related impacts for consumers and users |
Sub-sub-topic | Privacy |
IRO | Opportunity |
Location | Downstream |
Time-frame | Medium-term |
Title | Strong data security increases customer trust |
Example | Protecting consumer data is crucial for software companies; providing safe services which customers trust encourages strong brand reputation and growth. Microsoft has robust privacy and data protection measures to safeguard user information. |
Reference | Microsoft Sustainability Report, 2023 |
ESRS G1 - Business conduct
Topic | Business conduct |
Sub-topic | Corporate culture |
Sub-sub-topic |
|
IRO | Impact - potential negative |
Location | Own operations |
Time-frame | Short-term |
Title | A lack of transparency poses repetitional damage and unsatisfied employees. |
Example | A lack of transparency in executive remuneration practices, and the risk of this information being leaked, poses the threat of reputational damage. Internally, a lack of understanding of executive compensation practices can harbor resentment and reduction in employee morale. |
Reference | Coolset, 2024 |