Talent Matters: Time for action on Human Capital Reporting
The investment industry is launching a project focusing on the long-term value brought by people to businesses.
The project will highlight the benefits to investors of considering human capital in their day-to-day decision-making about companies. To facilitate this, it will also urge UK-listed businesses to start reporting on how they nurture and develop their employees.
Businesses have for years said their talent is their biggest asset, but this new initiative by The Investment Association will ask how we can move from talk to action on the growing issue of Human Capital Reporting.
It is the latest initiative of 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.
Speakers at the event will include:
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Helena Morrissey, Chair of the Investment Association and CEO of Newton Investment Management
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Alex Edmans, Professor of Finance at London Business School
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Joanne Segars, Chief Executive of the Pensions and Lifetime Savings Association (PLSA)
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Baroness Kingsmill, Author of the Kingsmill Review of Women's Pay and Employment
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Edward Bonham Carter, Vice Chairman of Jupiter PLC
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Guy Sears, Interim Chief Executive at The Investment Association
Helena Morrissey, Chair of the Investment Association and CEO of Newton Investment Management, said:
"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."
