annual review indst 2024 public - Flipbook - Side 39
Annual Review 2024
UK
We submitted a further response to the UK Financial Conduct
Authority’s consultation on changes to the UK’s Listing
Regime, following the initial consultation period and
publication of the finalised changes. We expressed
disappointment that our feedback did not appear to have
been taken on board, and that the proposed reforms were
largely unchanged from the original proposal. In particular, we
highlighted the removal of requirements for historical financial
information for companies seeking to list, and the removal of
shareholder votes on related party transactions, as having a
negative impact on overall shareholder rights and protections.
We recognise that there is an increased focus on the
competitiveness of the UK market, and we remain committed
to ensuring that UK companies can grow and succeed in
their home territory. We will continue to engage with all
stakeholders in discussions on the UK market, and while we
are supportive of initiatives to help drive competitiveness,
we will work to ensure that this does not come at the cost of
shareholder rights and protections.
US
In the US, we have been active within the Human Capital
Management Coalition (HCMC), where our regional team
lead for North America, Emily DeMasi, is vice-chair.
The HCMC is a diverse group of influential institutional
investors and their representatives, working to elevate
human capital management as a critical component in
company performance. The Coalition engages companies
and other market participants with the aim of understanding
and improving how human capital management contributes
to the creation of long-term shareholder value.
As active members of the HCMC and in our role as vice-chair,
we sent a letter to the US Securities and Exchange
Commission (SEC) chair Gary Gensler. We asked the SEC to
respond to the September 2023 findings and
recommendations of the Investor Advisory Committee (IAC),
regarding human capital management disclosure. We
reaffirmed our desire for the Commission to propose rule
amendments to standardise registrant disclosures around
human capital management policies and practices.
We also participated in the second
annual Workforce Valuation Summit,
which focused on the workforce
transition, shaped by climate change
action and AI.
To recap, the HCMC has urged regulators and standard-setters
to improve access to workforce data through a balanced
approach, where principles-based disclosures are anchored by
four foundational, decision-useful disclosures that apply to all
companies. Those metrics are the number of full time, parttime and contingent or contracted workers directly involved in
firm operations; the total cost of the company’s workforce;
turnover; and diversity data that allows investors to understand
the nature and effectiveness of the company’s efforts to access
and develop new sources of talent.
We also participated in the second annual Workforce Valuation
Summit, which focused on the workforce transition, shaped by
climate change action and artificial intelligence. We asked why
resources like those available through the Workforce Disclosure
Initiative were not more widely adopted in the US. The
response was that our focus should instead be on encouraging
reporting on the four foundational disclosures.
Investors can encourage companies
to complete government reporting
requests.
We heard that local governments and economists were
seeking more robust data on skillsets to support a just
transition, given the impacts of climate change and artificial
intelligence on the workforce. A representative from the US
Chamber of Commerce acknowledged that companies face
a heavy reporting burden from the government and
outlined ongoing work to streamline reporting.
Investors can encourage companies to complete government
reporting requests to create a more accurate picture of emerging
trends and workforce transition needs. We will continue to
seek opportunities to engage on public policy through the
HCMC and engage with companies to disclose evidence that
they have robust human capital strategies in place.
Velika Talyarkhan
Theme co-lead: Human Capital
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