FCLTGlobal’s “The New Landscape of Human Capital Metrics” shares the disclosure rates across the MSCI ACWI Index of six human capital metrics it previously suggested (and will likely suggest again in response to the SEC’s forthcoming human capital rulemaking) the SEC include in response to its 2019 Regulation S-K rulemaking proposal based on FCLTGlobal's criteria of (i) materiality to investors, (ii) capability of third-party assurance and comparability across companies, and (iii) universal applicability across countries, sectors and contexts. The metrics include personnel turnover, leadership diversity, gender pay gap, employee health and safety, employee training, and total monetary losses from legal proceedings, the latter of which is not yet sufficiently defined to measure. While the disclosure rates have risen since 2019, the average disclosure rate across all relevant metrics reportedly is still less than 50%.
FCLT’s comment letter includes this summary table that may be instructive for companies seeking sources and examples of disclosure.
As noted in last week’s report: “HCM & Board Diversity Disclosure Rules: What to Do Now,” the Society plans to comment on the forthcoming human capital disclosure rule proposal.
See our recent report: “SEC Rulemaking Agenda: Timing Updates” and additional resources on our Human Capital page.
This post first appeared in the weekly Society Alert!