Current State of Human Capital Disclosure Practices

This staff paper serves as a discussion document for the International Sustainability Standards Board (ISSB) regarding the current state of entity disclosure related to human capital risks and opportunities. The paper aims to provide an overview of findings from research on how entities disclose human capital-related information, assessing alignment with IFRS S1 requirements. It outlines that human capital-related information is commonly disclosed across various sectors and regions, primarily in financial filings. The findings indicate that while many entities disclose governance information related to human capital, there are gaps in the details provided, particularly regarding oversight and risk management. The paper is structured to include background information, a summary of findings, and proposed next steps for further research. The analysis highlights the need for improved disclosure practices that align more closely with established standards, emphasizing the importance of detailed and specific reporting on human capital issues.