The Investment Association is launching a drive to increase human capital reporting by companies to demonstrate to investors that they are getting the most out of their employees.
The project will highlight the benefits to investors of considering human capital in their day-to-day decision-making about companies.
It will also urge UK-listed businesses to start reporting on how they nurture and develop their employees and how their health, training, absence and management policies impact productivity.
The initiative comes from the Investment Association’s corporate governance and engagement division, which helps fund managers to secure long-term, sustainable returns for their clients through good corporate governance.
The project launches this Friday, November 20 with an event at the London Stock Exchange that will bring together investment managers with UK companies.
The Investment Association will then look to engage with other stakeholder groups through the investment chain.
IA chair and CEO of Newton Investment Management Helena Morrissey says: “Many companies say that their talent is their greatest asset and they invest significantly in their talent, but there isn’t really a framework for reporting on the value of that talent. That makes it difficult for all of us – including of course investors – to assess this vital aspect of a company’s future prospects.
“This Investment Association initiative has the goal of moving from talk to actions, and then from actions to results on human capital reporting.”