The Investor Advisory Committee proposed a new rule to the agency that would require companies to disclose comprehensive labor data like compensation ranges and employment status.
- An advisory panel unanimously voted last month to propose a rule to the Securities and Exchange Commission that would require publicly traded companies to report more robust data regarding their workforce and human capital management.
- The new rule would require companies to disclose the number of people employed, organized by whether they are full-time, part-time or contingent workers, in addition to the total cost of the company’s labor force, broken down into compensation brackets.
- The proposed regulation also asks for turnover or comparable workforce stability metrics and sufficient workforce demographic data so investors can better understand a company’s “efforts to access and develop new sources of talent, and to evaluate the effectiveness of these efforts.”
However, some experts feel the SEC could further broaden its definition of “human capital” by including people with disabilities.
“Transparency on corporate demographic data is key to improving diversity and inclusion. As the SEC considers enhancing corporate disclosures, investors . . . urge it to include data on disability status,” New York State Comptroller Thomas DiNapoli told ESG Dive.
“We want the companies in our portfolio to ensure inclusive hiring practices and welcoming workplaces for people with disabilities because it will help companies outperform their peers and provide sustainable long-term returns.”
DiNapoli also wrote to SEC Chair Gary Gensler in February 2022, advocating for the inclusion of data related to disability status as part of any proposed rulemaking around human capital management and diversity disclosure.