How Employers Can Navigate the SEC's Human Capital Disclosure Rule

Sec Human Capital Disclosure 2025. How New SEC Human Capital Disclosure Rules Impact CHROs and CFOs Visier The update, which supplemented the pre-existing requirement that issuers disclose the number of employees, required companies to disclose human capital risks and resources Overview Our publication provides guidance for registrants to consider as they begin planning to meet the new requirement that they disclose human capital measures or objectives that are material to an understanding of their business

SEC Mandates Human Capital Disclosure: Nebulous Guidance Provided New amendments are intended to take into account changes in the regulatory, business, and technological environment since the adoption of Regulation S-K. Human Capital Management Disclosure —When, in August 2020, the SEC adopted a new requirement to discuss human capital as part of an overhaul of Reg S-K, the debate centered largely on whether the rule should be principles-based or prescriptive.

The SEC’s New Human Capital Disclosure Rule 4 Key Things to Know

The update, which supplemented the pre-existing requirement that issuers disclose the number of employees, required companies to disclose human capital risks and resources The Securities and Exchange Commission (SEC) recently announced a new human capital disclosure requirement for public companies to "reflect the many changes in our capital markets and the domestic and global economy in recent decades." Over the past several years, human capital has become increasingly important to investors The IAC recommends the SEC mandate prescriptive requirements in several key areas of human capital management disclosures to provide investors with relevant, timely and comparable data to adequately contextualize a company's workforce value.

The Current State of Human Capital Disclosure. Human Capital Management Disclosure —When, in August 2020, the SEC adopted a new requirement to discuss human capital as part of an overhaul of Reg S-K, the debate centered largely on whether the rule should be principles-based or prescriptive. Human capital resource disclosures by public companies have continued to be a focus since the U.S

Key Themes Emerge in the Second Year of Human Capital Management Disclosure for U.S. Companies. Historically, workforce-related disclosures were limited to headcount and executive compensation, offering minimal insights into a company's broader human capital strategy. The IAC recommends the SEC mandate prescriptive requirements in several key areas of human capital management disclosures to provide investors with relevant, timely and comparable data to adequately contextualize a company's workforce value.