Value Reporting Foundation
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Human Capital: Diversity, Equity & Inclusion

Standard-Setting
Last Update 03/10/22

This standard-setting project seeks to address diversity, equity and inclusion (DEI) in 45 industries, and will evaluate the addition or revision of disclosure topics and/or metrics to better account for how DEI can impact enterprise value within each of these industries.

Sector

All Sectors

Issues

Human Capital

Project Status

Stakeholder Consultation

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Project Overview

Project Objective

This standard-setting project seeks to address diversity, equity and inclusion (DEI) in 45 industries, and will evaluate the addition or revision of disclosure topics and/or metrics to better account for how DEI can impact enterprise value within each of these industries.

Project Background

This project stems from staff’s Human Capital Research Project, which was initiated to (1) analyze and document emerging evidence supporting the financial materiality of human capital issues, (2) review how human capital issues are accounted for across the existing SASB Standards, and (3) develop evidence-based recommendations for subsequent standard-setting activities. Since the research project was initiated, staff has completed a comprehensive literature review as well as several rounds of consultation with companies, investors, and subject matter experts, and has presented the preliminary results of the project to the Standards Board, including its Preliminary Framework (Framework) which was published in December 2020. In the May 2021 Board meeting, the staff and Board agreed on the priority of advancing standard-setting work focused on DEI (a subset of the Workplace Culture theme in the Framework).

Subsequently, staff has conducted further research and consultations in developing a list of industries where there exists compelling evidence that DEI is likely to impact enterprise value. More information on the staff’s methodology for industry selection can be found below in the December 2021 Board meeting and supplemental materials.


Project Status

  • Phase 1 - Initial Research
  • Phase 2 - Stakeholder Consultation
  • Phase 3 - Post-Consultation Analysis
  • Phase 4 - Exposure Draft Development
  • Phase 5 - Public Comment Period
  • Phase 6 - Public Comment Period
  • Phase 7 - Completed

Current Status

Staff is currently pursuing research and consultations to inform the following objectives:

  • Develop an initial view on potential accounting metrics for each of the four channels of business relevance
  • Identify the key internationalization challenges (e.g., data collection constraints, data privacy laws in key markets, etc.), and outline likely implications for standard setting

Next Steps

Staff will pursue market consultations beginning in 2022. Please contact staff if you would like to participate.


Published Documents & Supplemental Materials

Published Documents

There are no published documents at this time.

Supplemental Materials


Board Materials & Decisions

Board Meeting Outcomes

December 2021

  • The Board unanimously approved staff’s proposal to initiate a standard-setting project to evaluate the addition or revision of disclosure topics and/or metrics within an identified set of SASB Industry Standards to better account for the impact of diversity, equity, and inclusion (DEI) on enterprise value.
  • The Board and staff discussed staff’s rationale for standard setting, including evidence of investor interest in DEI, evidence connecting DEI to business performance, as well as staff’s approach to identifying industries for inclusion in the standard-setting proposal.
  • Next steps in the project will consist of staff conducting further research and market consultation to:
    • Refine industry list and list of industry characteristics/indicators, if needed;
    • Examine channels and industries across international markets; and
    • Develop a preliminary view on disclosure topic(s) scope and general issue category mapping for each identified industry based on channels of business relevance.

Board Materials

For a full list of past and upcoming Standards Board meetings, as well as associated materials, please visit our Board Meetings Calendar & Archive.


The staff has prepared this summary for informational purposes only. Any Standards Board decisions are tentative and do not change current accounting. Official positions of SASB are determined only after extensive due process and deliberations.