SEC Workforce Disclosures May Spur More ESG in Financial Reports

A new SEC mandate that companies report details of workforce management may prompt other so-called ESG disclosures in financial reports even without such mandates.

“The companies’ financial numbers alone aren’t really telling the entire story any more,” Marc Siegel, a member of the Sustainability Accounting Standards Board and former member of the Financial Accounting Standards Board, said in remarks to the Financial Executives International annual financial reporting conference.

The addition of the SEC-required human capital disclosures could change how annual reports are used as executives look to meet the growing demand from investors, Siegel said. And it could ...