In partnership with B Lab U.S. & Canada and over 50 investor, business and philanthropic organizations, the U.S. Impact Investing Alliance sent a letter to SEC Chair Gary Gensler urging movement on the long-awaited rulemaking on corporate human capital management (HCM) disclosures.

Investors are increasingly demanding clear, consistent and comparable information on material considerations such as a company’s workforce composition, compensation, health and safety, and diversity practices. In response to calls from investors, we encourage the Commission to pursue a comprehensive set of HCM disclosure requirements including universal quantitative and supplementary qualitative and information.

This letter comes two years after many of the same organizations originally wrote to Chair Gensler expressing support for an HCM rulemaking. While the SEC has yet to advance a proposal, there has been some movement globally, including the recent decision from the International Sustainability Standards Board (ISSB) to research human capital disclosure standards. In the private sector, the Corporate Racial Equity Alliance just released corporate performance standards for businesses seeking to advance equity and inclusion. Interested stakeholders are encouraged to respond to the call for public comments.

Fran Seegull, President of the U.S. Impact Investing Alliance states: “Transparency and accountability are the hallmarks of efficient markets, and a company’s human capital is in many ways its greatest asset. A streamlined and standardized disclosure framework will improve the transparency, accountability and efficiency of our capital markets, enhancing American competitiveness.”

The Alliance looks forward to engaging with the SEC and field partners to ensure that investors have access to clear and comparable data on HCM practices.