Welcome Remarks

Mihwa Park

WEPs Coordinator
WEPs Secretariat
UN Women

Opening Remarks

Anna Falth
Global Head
WEPs Secretariat
UN WomenToday‘s Speakers

Elodie CarmonaAndreea Chifan

Alyson Genovese

Head of Unit,
Policy Department for Citizens’
Rights and Constitutional Affairs
European Parliament

Parliamentary Research Administrator,
Policy Department for Citizens’ Rights
and Constitutional Affairs
European Parliament

Senior Director/
Global Head of Corporate
Responsibility
S&P Global

Overview on EU legislation
related to gender equality andreporting obligations
Elodie Carmona and Andreea Chifan, European Parliament
Disclaimer: as per their duties towards their employer, the authors can only present
companies reporting obligations under a selection of EU legislative texts and cannot, inparticular, give any legal advice to participants in this webinar

Structure of the presentation
The EU legislative procedure in a nutshell (Elodie
Overview of the (recent) EU legislation on gender equality with
provisions on reporting obligations (Elodie)
The companies’ reporting obligations under the Corporate
Sustainability Reporting Directive (CSRD) 2022/2464/EU(Andreea)
The companies’ reporting obligations under the newly adopted
Pay Transparency Directive (Elodie)

i. The EU legislative procedure in a nutshell

i. Overview of the (recent) EU legislation on genderequality with provisions on reporting obligations
Work-life Balance Directive (2019/1158) – transposition by 02/08/2022
Article 18, Reporting and review (Member States)

Women-On-Board Directive (2022/2381) – transposition by 28/12/2024
Article 7, Reporting (MS)The Minimum Wages Directive (2022/2041) – transposition by 15/11/2024
Article 10, Monitoring and Data Collection (MS)The Corporate Sustainability Reporting Directive (CSRD) 2022/2464/EU –fulltransposition by 06/07/2024 (Employers and MS)–see section III
The Pay Transparency Directive (2023/970) – transposition by 07/06/2026(Employers and MS)–see section IV

i. The Corporate Sustainability Reporting
Directive (CSRD) 2022/2464/EU
Amending Regulation (EU) No 537/2014, Directive 2004/109/EC,
Directive 2006/43/EC and Directive 2013/34/EU, as regards
corporate sustainability reportingis a revision of Directive 2014/95/EU on the disclosure of nonfinancial and diversity information(the Non-financial Reporting Directive – NFRD)

CSRD
In force since January
2023
Full transposition by July2024
Complemented by theEuropean Sustainability
Reporting Standards*

CSRD
EC announced the revision of the NFRD in the European Green Deal(2019) as one of the measures to mainstream sustainability in thefinancial sector
In its Impact Assessment the EC defines the Directive’s objective*:
To improve sustainability reporting at the least possible cost, toensure that there is adequate publicly available information
about the risks that sustainability issues present for companies,
and the impacts of companies themselves on people and theenvironment
It aims to ensure that reported information is comparable, reliable
and easy for users to find and make use of with digital technologies

NFRD (2014) leads to the CSRD (2021)
Subsequent policy developments:

UN SDGs (2015)
Paris Agreement on climate change (2016)
EU sustainable finance action plan (2018) and the European Green Deal(2019)
IA: the NFRD's scope, flexibility, lack of granularity of reporting
requirements, as well as the NFRD's requirements regarding assurance(i.e. verification of the non-financial information provided), location of
the reported information and enforcement, are the drivers behind theproblems identified:
From a user perspective – lack of adequate info on non-financial issues
From a preparer perspective – costs, difficulty, complexity re what info to report(different standards & sets of guidance)

CSRD applicability
The reporting requirements extend to nearly 50 000
companies in the EU (currently only 11 000)
All large companies (with more than 250 employees)
All listed companies
Only listed SMEs if not applies voluntarily
Some non-EU companies will also have to report if theygenerate over EUR 150 million on the EU market

European Sustainability
Reporting Standards (ESRS)*
Adopted via the EC delegated Regulation 2023/2772
Based on technical advice from EFRAG* - an independent,
multistakeholder advisory body, majority funded by the EU andAligned with the standards of the International Sustainability Standards
Board (ISSB) and the Global Reporting Initiative (GRI).
Apply from 1 January 2024 for financial years beginning on or after 1
January 2024 (Article 2)
Mandatory for use by companies that are obliged by the Accounting
Directive to report certain sustainability information
Common standards are expected to help companies to reduce reporting
costs in the medium and long term, by avoiding the use of multiple
voluntary standards as this is the case today*ESRS reporting timetable* 1
Companies previously subject to the (NFRD)(large listed companies, large banks and large insurance undertakings – all if they
have more than 500 employees),+ large non-EU listed companies with more than 500 employees:
financial year 2024, with first sustainability statement* published in 2025.

Other large companies, including other large non-EU listed companies:
financial year 2025, with first sustainability statement published in 2026.

Listed SMEs, including non-EU listed SMEs:

financial year 2026, with first sustainability statements published in 2027.

NB: However, listed SMEs may decide to opt out of the reporting
requirements for a further two years. The last possible date for a listed
SME to start reporting is financial year 2028, with first sustainability
statement published in 2029.

ESRS reporting timetable 2In addition
non-EU companies thatgenerate over EUR 150 million per year in the EU andhave in the EU either a branch with a turnover exceeding EUR 40
million or a subsidiary that is a large company or a listed SME

will have to report on the sustainability impacts at the grouplevel of that non-EU company as from financial year 2028,
with first sustainability statement published in 2029.

NB: Separate standards will be adopted specificallyfor this case.

CSRD – 12 ESRS
2 Cross-cutting ESRSESRS 1 - General Requirements
ESRS 2 - General Disclosures - essential information to
be disclosed irrespective of which sustainability
matter is being considered - mandatory for allcompanies under the CSRD scope

CSRD – 12 ESRS
5 Environmental ESRSESRS E1 – Climate
ESRS E2 – Pollution
ESRS E3 – Water and marine resources
ESRS E4 – Biodiversity and ecosystems
ESRS E5 – Resource use and circular economy

CSRD – 12 ESRS
4 Social ESRSSocial – ESRS S1 - Own workforce
Social – ESRS S2 - Workers in the value chain
Social – ESRS S3 - Affected communities
Social – ESRS S4 - Consumers and end users
1 Governance ESRS G1 - Business conduct

CSRD
Reporting obligations from a gender perspective 1ESRS 2 – General Disclosure – Metrics & targets:

Disclosure Requirement GOV-1 – The role of the administrative, management
and supervisory bodies- the objective of this Disclosure Requirement is to provide
an understanding of:(a) the composition and diversity of the administrative, management andsupervisory bodies;- the undertaking shall disclose:(...)(d) percentage by gender and other aspects of diversity that the undertaking
considers. The board's gender diversity(13)*shall be calculated as an average ratio offemale to male board members;

CSRD
Reporting obligations from a gender perspective 2ESRS S1Topic: Own workforce
Sub-topic: Equal treatment and opportunities for all
Sub-sub-topic: Gender equality and equal pay for work of equal value
Sub-sub-topic: Diversity

ESRS S2Topic: Workers in the value chain
Sub-topic: Equal treatment and opportunities for all
Sub-sub-topic: Gender equality and equal pay for work of equal value
Sub-sub-topic: Diversity

CSRD
Reporting obligations from a gender perspective 3ESRS S1 Own work force

This Standard also requires an explanation of how the impacts of the undertaking, as
well as the undertaking’s dependencies on its own workforce, can create material risks
or opportunities for the undertaking.

For example, on the matter of equal opportunities, discriminationin hiring and promotion against women can reduce theundertaking’s access to qualified labour and harm its reputation.
Conversely, policies to increase the representation of women in
the workforce and in upper levels of management can havepositive effects, such as increasing the pool of qualified labour andimproving the undertaking’s reputation.

CSRD
Reporting obligations from a gender perspective 4
ESRS S1 Own work force - Policies related to own workforce
The undertaking shall disclose:(a) whether it has specific policies aimed at the elimination of discrimination, includingharassment, promoting equal opportunities and other ways to advance diversity andinclusion;(b) whether the following grounds for discrimination are specifically covered in thepolicy: racial and ethnic origin, colour, sex, sexual orientation, gender identity,disability, age, religion, political opinion, national extraction or social origin, or otherforms of discrimination covered by Union regulation and national law;(c) whether the undertaking has specific policy commitments related to inclusion or
positive action for people from groups at particular risk of vulnerability in its own
workforce and, if so, what these commitments are; and(d) whether and how these policies are implemented through specific procedures toensure discrimination is prevented, mitigated and acted upon once detected, as wellas to advance diversity and inclusion in general.

CSRD
Reporting obligations from a gender perspective 5ESRS S1 Own work force - Policies related to own workforce Metrics & Targets
Disclosure Requirement S1-9 – Diversity metrics

The undertaking shall disclose the gender distribution at top management and the age distribution
amongst its employees

Disclosure Requirement S1-15 – Work-life balance metrics

The undertaking shall disclose the extent to which employees are entitled to and make use offamily-related leave(b) the percentage of entitled employees that took family-related leave, and a breakdown by gender.

Disclosure Requirement S1-16 – Remuneration metrics (pay gap and total
remuneration)

The undertaking shall disclose the percentage gap in pay between its female and male employees
and the ratio between the remuneration of its highest paid individual and the median remuneration
for its employees, including, among others:
the gender pay gap, defined as the difference of average pay levels between female and male employees, expressed aspercentage of the average pay level of male employees(97);CSRD
Reporting obligations from a gender perspective 6ESRS S1 Own work force - Policies related to own workforce Metrics & Targets
Disclosure Requirement S1-17 – Incidents, complaints and severe
human rights impacts
The disclosure shall include, subject to the relevant privacy regulations,work-related incidents of discrimination on the grounds of gender, racial orethnic origin, nationality, religion or belief, disability, age, sexual orientation,or other relevant forms of discrimination involving internal and/or external
stakeholders across operations in the reporting period. This includes
incidents of harassment as a specific form of discrimination:(a) the total number of incidents of discrimination, including harassment, reported in thereporting period.

i. Reporting obligations under thePay Transparency DirectiveBACKGROUND
Equal pay for equal work is one of the EU founding principles (Article 157 of the Treaty on the Functioning of the EU).
Yet, the implementation and enforcement of this principle remain a challenge:
Lack of pay transparency is one of the key obstacles to closing the gender pay gap: women earn on average
13% less than men per hour (2021).
The pay gap has a long-term impact on the quality of women’s lives, on their risk of exposure to poverty and on
the persisting pension pay gap (~30% in the EU in 2023).
Owing to a lack of pay transparency, pay discrimination often goes undetected, and victims face difficulties inmaking claims for redress.
On 4 March 2021, the European Commission adopted a legislative proposal on binding pay transparency measures,aiming to strengthen the application of the principle of equal pay for equal work between women and me throughpay transparency and enforcement mechanisms (better access to justice for victims of pay discrimination).
The Council adopted its general approach on the proposal on 6 December 2021.
On 5 April 2022, the European Parliament confirmed its negotiation mandate on the proposal,
Interinstitutional negotiations started on 30 June 2022. On 15 December 2022, after 5 trilogues, an agreement on theproposal was reached (“1ˢᵗ reading agreement”).
The Parliament and the Council endorsed the agreement respectively on 30 March and on 24 April 2023.
The Directive was published in the OJ on 17 May 2023, and has to be transposed into national law by the Member
States by 7 June 2026.

SCOPE (article 2)
Employers in public and private sectors in the EU.
All workers who have an employment contract oremployment relationship as defined by law,collective agreements and/or practice in force ineach Member State with consideration to the caselaw of the Court of Justice,
Certain aspects also apply to job applicants.

MAIN PROVISIONS (articles 5 -5, 14-25) :Access to information

Obligation for employers to inform job seekers about the starting salary or pay
range of advertised positions, whether in the vacancy notice or ahead of the interview.
Prohibition for employers to ask candidates about their pay history.
Right for workers to ask their employers for information about:average pay levels, broken down by sex, for categories of employees doing the same work or work ofequal value
the criteria used to determine pay and career progression, which must be objective and gender neutral

Access to justiceCompensation for victims of gender pay discrimination (including fullrecovery of back pay and related bonuses or payments in kind).
Burden of proof on the employers.
Effective, proportionate and dissuasive penalties (including fines) in caseof violations.

Specific provisions on
Intersectional discriminations (the combination ofmultiple forms of inequality or disadvantage, such as
gender and ethnicity or sexuality) (articles 3, 16, 23, 29)
The needs of workers with disabilities (article 8)
The wording of job vacancy notices and job titles(employers shall ensure that they are gender-neutral)(article 5)Provisions on reporting - overview of article 9 (Reporting on pay gap
between female and male workers)
Companies with >250 employees will be required to report annually on
the gender pay gap in their organisation to the relevant national
authority as of 2027.
For smaller companies (100-249 employees) the reporting obligation willtake place every three years (starting in 2027 for companies with 150249 employees and 2031 for companies with 100-149 employees)

NB: technical assistance and training provided to employers with <250 workers and to the workers’
representatives concerned to facilitate compliance (article 11)

Companies with <100 employees won't have any reporting obligation(but they have the right to report on their own initiative and MSs can
individually decide to impose an obligationProvisions on reporting – details of article 9
Employers have to provide the MSs with the following info:

the gender pay gap;
the gender pay gap in complementary or variable components;
the median gender pay gap;
the median gender pay gap in complementary or variable components;
the proportion of female and male workers receiving complementary orvariable components;
the proportion of female and male workers in each quartile pay band;
the gender pay gap between workers by categories of workers broken down byordinary basic wage or salary and complementary or variable components

The accuracy of the information shall be confirmed by the employer’smanagement, after consulting workers’ representatives
The info is published by the monitoring body and by the company on its
websiteJoint pay assessment (Article 10):
In case of a pay gap of more than 5% that cannot be justified by objective, genderneutral criteria and the employer has not remedied such an unjustified difference inthe average pay level within six months of the date of submission of the payreporting, companies will be required to take action in the form of a joint pay
assessment carried out in cooperation with workers’ representatives
Aim of the JPA: identify, remedy and prevent those differences in pay between
female and male workers
Employers shall make the JPA available to workers and workers’ representatives(and the labour inspectorate and the equality body upon request).
When implementing the measures arising from the JPA, the employer shall remedy
the unjustified differences in pay within a reasonable period of time, in close
cooperation with the workers’ representatives.

Expected consequences of the directive
Gender bias in pay systems and job grading that does not value thework of women and men equally and in a gender-neutral way is very
common.
Since such bias is often unconscious, pay transparency can help
raise awareness of the issue among employers and help them
identify discriminatory gender-based pay differences that cannot
be explained by valid discretionary factors and are often
unintentional.
The new legislation should allow workers to detect andchallenge possible discrimination between women and men.

Panel round table &Q&A Sessoin

Closing Remarks

Anna Falth
Global HeadWEPs Secretariat
UN Women

Thank you!