The US Impact Investing Alliance has called on organisations to sign on to its letter to US Securities and Exchange Commission (SEC) Chair Gary Gensler, urging him to prioritise a rulemaking on human capital management disclosures. In 2022, nearly 50 organisations had already signed a similar letter. Two years on, with no movement, the alliance has revived and updated the text, calling for more supporters. Information on human capital management – such as a company’s workforce composition, compensation, health and safety, and diversity practices – are vital to investor decision-making, the letter stressed. It added that investments in human capital are associated with higher risk-adjusted returns, return on assets, return on capital, profitability and overall outperformance compared to benchmarks. Recommendations from the SEC Investor Advisory Committee has previously mentioned that “investors still need fundamental human capital management metrics to anchor industry- and company-specific information to seize opportunities and mitigate risks”. Signatories to the letter so far include the Ford Foundation, McKnight Foundation and Nathan Cummings Foundation.
