Norges Bank Investment Management’s (NBIM) new expectation document on human capital management sets forth its expectations of companies and boards on how to manage and oversee their human capital resources. The expectations address: (i) the integration of human capital management into corporate policies and strategy; (ii) the integration of material human capital management risks into the company’s risk management framework; (iii) the disclosure of material human capital management information; and (iv) workforce engagement. More specifically, the expectations encompass worker health and safety, DE&I, pay/compensation, training and development, and alternative workforce models, across each of these focus areas.
As to disclosure specifically, expectations are as follows:
While the paper indicates it is directed primarily at companies’ boards of directors, most of the requested action items are aimed at, and would be required to be conducted or facilitated by, management.
See “‘Effective management of human capital increasingly critical to company success,’ says NBIM” (IR Magazine) and additional resources on our Institutional Investors and Human Capital Management pages.
This post first appeared in the weekly Society Alert!