Author: Lee Webster

ISO 30414 exceeds SEC requirements for Human Capital Reporting

Background

• With increasing investment in human capital and its potential impact on organizational performance, sustainability and future viability, there is increasing interest in human capital measurements among internal and external stakeholders.

• Human Capital Reporting standards support transparency and benchmarking of intangibles.

• Publishing of the “ISO 30414 Human Capital Reporting Standard” in December 2018 via ISO Homepage.

• All participating countries in favor. Solid basis for ESG related reporting, allowing stakeholders to assess predictability of sustainable growth.

• Deutsche Bank AG and DWS already certified. Numerous global large corps engaged in certification process.

Guiding principles for Human Capital Reporting (HCR)

• Strategic focus and materiality of HR metrics that align with the organization's strategy and values.

• Relevance for organizations of all types, sizes, sectors and geographic locations.

• Based on the concept of materiality that identifies the important aspects for the organization and its internal and external stakeholders.

• Transparency of reporting that clearly identifies human capital risks and opportunities to key governance bodies and stakeholders.

HCR reporting areas (23 KPIs for large organizations)

• compliance and ethics

• costs

• diversity

• leadership

• organizational culture

• organizational health, safety and well-being

• productivity

• recruitment, mobility and turnover

• skills and capabilities

• succession planning

• workforce availability

Benefits for organizations

• Sustainability / Environmental Social Governance (ESG): By being compliant to the ISO 30414 standard, organizations can further position themselves in the context of sustainable corporate governance.

• Employee-related value creation: By implementing the guideline, organizations show (internally and externally), that they further develop and position their HR function as well as their willingness and ability to focus on employee-related values.

• Capital market and investors view: For shareholders and investors it is more and more important, that the assets they are investing in, are best in class from a Human Capital Management perspective.

• No selection effort between different HR reporting standards: Due to the global uniqueness of the ISO 30414 Human Capital Reporting standard, organizations have exactly one standard to choose.

• Due to increasing ISO certifications, the number of companies and thus the comparative values will increase.