Impact of SEC Human Capital Reporting Rules

The SEC's human capital reporting rules require publicly traded companies to disclose specific metrics related to their workforce, such as employee numbers and material human capital issues affecting performance. This shift encourages companies to engage in meaningful discussions between financial and human resources departments, aligning their reporting with business goals. The lack of standardized metrics means that companies have the freedom to communicate their narrative, which can result in varying degrees of detail and clarity in disclosures. For example, while Tesla's reporting is minimal, Ford provides comprehensive insights into its human capital strategies, illustrating the potential for companies to shape their human capital stories.