ARTICLE
2 August 2021

Human Capital Disclosure Report: With Vague SEC Guidance Comes General Disclosures

SS
Seyfarth Shaw LLP

Contributor

With more than 900 lawyers across 18 offices, Seyfarth Shaw LLP provides advisory, litigation, and transactional legal services to clients worldwide. Our high-caliber legal representation and advanced delivery capabilities allow us to take on our clients’ unique challenges and opportunities-no matter the scale or complexity. Whether navigating complex litigation, negotiating transformational deals, or advising on cross-border projects, our attorneys achieve exceptional legal outcomes. Our drive for excellence leads us to seek out better ways to work with our clients and each other. We have been first-to-market on many legal service delivery innovations-and we continue to break new ground with our clients every day. This long history of excellence and innovation has created a culture with a sense of purpose and belonging for all. In turn, our culture drives our commitment to the growth of our clients, the diversity of our people, and the resilience of our workforce.
Last Fall, we reported that the Securities Exchange Commission (SEC) was deliberately vague in its new requirement that publicly listed companies subject to the SEC's reporting requirements disclose a ...
United States Corporate/Commercial Law
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Last Fall, we reported that the Securities Exchange Commission (SEC) was deliberately vague in its new requirement that publicly listed companies subject to the SEC's reporting requirements disclose a description of their "human capital resources." For this first proxy season of disclosure, the human capital disclosure requirements came into effect in the midst of a global health pandemic that wreaked havoc on workforces across the value chain and on the heels of a tumultuous year that required communities and businesses to directly address unhealed wounds of the 2020 social justice movements. These global overlays only fueled the calls for businesses—private and public—to address and disclose their environmental, social and governance (ESG) matters at all levels of the business.

A significant ESG matter that has captured the attention of all parties shaping the ESG dialogue is an organization's approach to and management of its human capital, or simply, its people.  An organization's approach and management of its talent, typically, the purview of human resources, has shifted to be a prominent topic for boards of directors. For the SEC, this has become a topic that warrants disclosures to investors so that investors are informed of the material issues related to their investments.

Against this backdrop and vague requirements, registrants had wide discretion to shape their first human capital management disclosure. To gain further perspective, Seyfarth analyzed the HCM disclosures across a number of industries.

The full report can be found here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
2 August 2021

Human Capital Disclosure Report: With Vague SEC Guidance Comes General Disclosures

United States Corporate/Commercial Law

Contributor

With more than 900 lawyers across 18 offices, Seyfarth Shaw LLP provides advisory, litigation, and transactional legal services to clients worldwide. Our high-caliber legal representation and advanced delivery capabilities allow us to take on our clients’ unique challenges and opportunities-no matter the scale or complexity. Whether navigating complex litigation, negotiating transformational deals, or advising on cross-border projects, our attorneys achieve exceptional legal outcomes. Our drive for excellence leads us to seek out better ways to work with our clients and each other. We have been first-to-market on many legal service delivery innovations-and we continue to break new ground with our clients every day. This long history of excellence and innovation has created a culture with a sense of purpose and belonging for all. In turn, our culture drives our commitment to the growth of our clients, the diversity of our people, and the resilience of our workforce.
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