CAROLYN ALLWIN | Managing Principal, Capco
CAITLIN STEVENS | Senior Consultant, Capco
LINDSAY MOREAU | Social Impact Advisor

Human capital disclosures and diversity, equity, and inclusion (DEI) is top of mind for investors and companies given today’s social climate. Human capital management (HCM) disclosures are next on the SEC’s ESG agenda, and these disclosures will require companies to describe their human capital resources. Currently, both regulatory requirements and reporting frameworks and standards are not prescriptive when it comes to these topics, allowing companies flexibility in how they interpret and report their data. The proposed HCM rules are likely to be more prescriptive than existing requirements and could transform the kind of data companies disclose. Human capital management and DEI are significant components of ESG, and specific disclosures would support investors to make better-informed long-term investment decisions.