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Compliance

ClimaHQ automates the workforce data you need for EU regulatory reporting: Pay Transparency, CSRD, and AI Act compliance.

EU Regulatory Landscape

Three directives are reshaping how organizations report on their workforce.

European Union regulations increasingly require companies to measure, report, and act on social metrics. ClimaHQ is designed to help you meet these requirements with data you already collect through pulse surveys and HRIS integrations.

Pay Transparency Directive

Effective June 7, 2026: mandatory gender pay gap reporting.

What It Requires

Organizations with 100+ employees must report gender pay gaps. Workers gain the right to request pay information for equivalent roles. Job postings must include salary ranges.

What ClimaHQ Generates

ClimaHQ produces Pay Transparency reports by combining HRIS pay band data with demographic information. Reports include mean and median gender pay gaps, pay band distribution by gender, and intersectional breakdowns where data permits.

Timeline

EU Member States must transpose the directive by June 7, 2026. Organizations should begin collecting the necessary data now to be ready for the first reporting period.

CSRD S1: Social Reporting

Workforce indicators for sustainability reporting.

What It Requires

The Corporate Sustainability Reporting Directive (CSRD) requires large companies to report on social and environmental metrics. The S1 standard covers 'Own Workforce': diversity, working conditions, and social governance indicators.

What ClimaHQ Generates

ClimaHQ exports CSRD S1-ready data including workforce composition by gender and age group, employee satisfaction indicators derived from pulse surveys, and psychological safety metrics as a proxy for working conditions.

EU AI Act

Why ClimaHQ is zero-risk under the AI Act.

AI in HR is high-risk

The EU AI Act classifies AI systems used in employment, worker management, and access to self-employment as high-risk (Annex III, paragraph 4). High-risk systems face extensive requirements: risk management, data governance, technical documentation, human oversight, and conformity assessments.

ClimaHQ Uses Zero AI

ClimaHQ's analytics are 100% deterministic. Scores are computed from weighted averages. Predictions use deterministic weighted scoring with full transparency. Topic extraction uses statistical text analysis (TF-IDF). There are no neural networks, no large language models, and no opaque algorithms. The entire regulatory burden of the AI Act simply does not apply.

What ClimaHQ Generates

An AI Act Conformity Declaration documenting that ClimaHQ does not deploy AI systems within the meaning of the regulation. This document can be provided to auditors or regulators on request.

Report Lifecycle

Every compliance report follows a four-stage workflow.

1

Draft

Reports are generated automatically at the end of each reporting period. Draft reports can be reviewed and edited before submission.

2

In Review

Move a report to 'In Review' when it's ready for internal stakeholder review. The report is locked from automatic updates at this stage.

3

Submitted

Mark a report as 'Submitted' after filing with the relevant authority. The report becomes read-only.

4

Archived

Old reports are archived for audit trail purposes. All archived reports remain accessible.

Equity Dashboard

Detect pay and culture equity gaps across demographics.

How It Works

The Equity Dashboard runs statistical tests (t-tests and effect size calculations) across gender, ethnicity, and department groupings. It surfaces statistically significant gaps in culture scores and compensation data.

Intersectional Analysis

Beyond single-variable comparisons, ClimaHQ can detect gaps at intersections. For example, pay differences affecting women of a specific ethnicity in a specific department. Intersectional analysis requires sufficient data in each sub-group (above the anonymity threshold).

Stay ahead of EU compliance deadlines

ClimaHQ generates the reports you need from data you already collect.