Human capital

As part of its 2024-2026 work plan, the International Sustainability Standards Board (ISSB) will research risks and opportunities associated with sustainability topics beyond climate for entities to meet the information needs of investors. The research projects will help the ISSB decide whether it should pursue standard-setting for disclosure requirements on some or all of these topics.

The ISSB will explore information about sustainability-related risks and opportunities associated with human capital. Human capital refers to the people who make up a company’s own workforce and workers in the company’s value chain. Consistent with the Integrated Reporting Framework, human capital also refers to the workforce and workers' competencies; capabilities and experience; and motivations to innovate. How a company manages and invests in its human capital can directly affect its ability to deliver value over the long term. Human capital management includes such issues as workforce composition; workforce stability; diversity and inclusion; training and development; health, safety and wellbeing; and compensation.

Initial research will seek to define the project’s scope and determine how best to stage work on the topic to produce timely analysis and explore the necessity and feasibility of standard-setting. The ISSB might consider opportunities for connectivity between work on human capital-related risks and opportunities and any work related to the IASB’s Intangible Assets project.