ESG投資者關(guān)注的員工：必不可少的要素是什么

1、GlobalESGHow essential is essential?Employees in focus for ESG investorsPeople are companies most important resource, but ESG investors have few ways to measure human capitalData shows the benefits and risks related to diversityWe believe COVID-19 will increase regulatory scrutiny on worker health &

2、 safety, benefits and gig workersHow essential is essential? Companies often say that employees are their most important resource. But its hard for investors to determine how companies manage that resource. COVID-19 has heightened the focus on this area. In the last several weeks, it has become clea

3、r that many of the worlds “essential workers” are amongst the lowest paid and have the least job security. We review current and future reporting standards and highlight diversity and culture, health and safety, stability (turnover) and the gig economy.In the last few years, the human capital elemen

4、t of ESG has gathered steam driven by low unemployment, changing demographics, the rise of the gig economy, the #MeToo movement, and high-profile accidents.In the US, the Human Capital Management Coalition, a group of 28 institutional investors with approximately USD4 trillion in assets, has pushed

5、regulators and companies to improve human capital disclosure.12 And in the last several weeks, global investors have asked companies to rethink their approach to compensation, benefits and paid leave.In this report, we examine critical elements of human capital including diversity, worker health and

6、 safety, turnover and leave policies. Weve chosen these areas because they have the best available data but acknowledge that this is just the tip of the iceberg.The spotlight gets brighterHuman capital has already been moving up the agenda for ESG investors but we believe that the pandemic will push

7、 every investor to strive to better measure and manage companies actions in this area. In addition, in our view, the next year will see increased regulatory scrutiny on human capital as governments deal with the aftermath of COVID-19.8 April 2020Tessie PetionHead of ESG Research, Americas HSBC Secur

8、ities (USA) Inc. HYPERLINK mailto:tessie.d.petion tessie.d.petion+1 212 525 4866Wai-Shin Chan, CFAHead, Climate Change Centre; Co-Head, ESG ResearchThe Hongkong and Shanghai Banking Corporation Limited HYPERLINK mailto:wai.shin.chan.hk wai.shin.chan.hk+852 2822 4870Ashim PaunCo-Head, ESG Research; C

9、limate Change StrategistHSBC Bank plc HYPERLINK mailto:ashim.paun ashim.paun+44 20 7992 3591Davey Jose*Thematic Analyst, Disruptive TechnologiesHSBC Bank plc HYPERLINK mailto:davey.jose davey.jose+44 20 7991 1489* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qu

10、alified pursuant to FINRA regulations 2020 Institutional Investor surveyIf you value our service and insights, please voteII Research has acquired the Extel survey Voting extended click here to vote Barrons (8 April 2019) Big investors want to know about personnel issues. The SEC could helpHuman Cap

11、ital Management Coalition (22 October 2019) Letter regarding Modernization of Regulation S-K Items 101, 103, and 105”Disclosures & DisclaimerThis report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it.Issuer

12、 of report: HSBC Securities (USA) IncView HSBC Global Research at:https: HYPERLINK / /Executive SummaryHuman capital is the ultimate intangible assetCompanies often say that employees are their most important resource. But its hard for investors to determine how companies manage that resource. Human

13、 capital data is often qualitative in nature and lacks consistency and comparability. In this report we review current and future reporting standards and highlight diversity and culture, health and safety, stability (turnover) and the gig economy.We measure isolation gaps as a proxy for culture and

14、diversityGender is a focus for ESG investors because it has been demonstrated that more women in management positions is correlated with better company performance. It is also a focus because of the better data availability only four countries regularly report data on diversity beyond gender. In our

15、 view, particular attention should be given to retention data, and the gap between overall employees and those in executive positions. We analyze the number of women employees and managers at global companies and find that companies in the health care, financials, real estate, consumer discretionary

16、 and staples sectors have the largest gaps. This suggests these are the companies that may face risks related to culture.Information on compensation provides insight on inequalityAlthough the US CEO pay ratio is sometimes unreliable and gender pay gap data is often unavailable, we believe that where

17、 it is disclosed, these metrics can provide insight on inequality. As weve seen during the COVID-19 pandemic, social and economic inequality can worsen outcomes. On a positive note, there is some evidence that companies with lower gender pay gaps have performed better than those with higher pay gaps

18、 over 2, 5 and 10 year horizons.Health and safetyWe think there are serious implications for companies with poor safety practices but have often noted it takes a major incident to raise health and safety standards. Metrics like total accidents, fatalities and injury rate help measure principal ESG r

19、isks in several sectors. COVID-19 has increased scrutiny on companies responsibilities for employee health more holistically, particularly in the retail sector, and we discuss additional ways of assessing company performance in this area.The gig economyAs we noted in How bigs the gig: 10 key questio

20、ns on the gig economy (24 April 2019), by foregoing benefits and contractual employment, gig workers may be both worse off and more vulnerable during an economic downturn. However, we see evidence that gig workers may be increasing in number in the short term and may be more likely to face regulatio

21、n in the long term.Contents HYPERLINK l _TOC_250013 Executive Summary 2 HYPERLINK l _TOC_250012 Human capital is the ultimate intangible asset 2 HYPERLINK l _TOC_250011 Current reporting standards 4 HYPERLINK l _TOC_250010 Perceptions vs reality 4Over the horizon what is coming? 6 A note on self-rep

22、orting onhuman capital 7 HYPERLINK l _TOC_250009 Diversity and gender 8 HYPERLINK l _TOC_250008 Disclosure is diverse 8 HYPERLINK l _TOC_250007 A note on stability (turnover) 12 HYPERLINK l _TOC_250006 Health and safety 13 HYPERLINK l _TOC_250005 Is healthcare safe? 13 HYPERLINK l _TOC_250004 Is saf

23、ety healthy? 15 HYPERLINK l _TOC_250003 Gigging for a living 18 HYPERLINK l _TOC_250002 Flexible but vulnerable 18 HYPERLINK l _TOC_250001 Disclosure appendix 21 HYPERLINK l _TOC_250000 Disclaimer 23Deepika Naga K contributed to this report. Ms. Deepika Naga K is employed by a non- US affiliate of H

24、SBC Securities (USA) Inc. and is not a registered/qualified pursuant to FINRA regulations).Current reporting standardsStandards vary and there are loopholesHuman capital data points can be a proxy for inequalityRegulators are bringing in more ESG requirementsPerceptions vs realityReported CEO pay ra

25、tios may not be reliableMedians and ratios in the USAccording to a review of Fortune 100 firms published by the Harvard Law School Forum on Corporate Governance, while companies often highlight managements general efforts around certain human capital issues (e.g., diversity and inclusion or broader

26、workforce compensation) they do not identify key performance indicators (KPIs) or quantify them.3 We can corroborate this based on our years of experience in ESG beyond disclosing the total number of employees most human capital disclosures are not quantitative in nature.What is required?The US Secu

27、rities and Exchange Commission (SEC) adopted a rule (part of Dodd-Frank) that requires public companies to disclose the ratio of the compensation of its chief executive officer (CEO) to the median compensation of its employees. Companies first began reporting in 2018. It is important to note that th

28、e CEO pay ratio rule is not necessarily calculated using the actual median. Because of a loophole, companies can use a single person who is at the median. After identifying that median worker the first year, for the next two years a company can continue to report that particular workers pay unless t

29、hey reasonably believe there have been significant changes to their workforce. According to press reports, hundreds of companies use a designated person vs the median which may explain why this figure can have large year over year jumps.4 We believe this loophole means that the figures being reporte

30、d to the federal government are not reliable as a measure of current median worker pay.287xAvg CEO pay to median employee (2018)According to the AFL-CIO, in 2018, the average CEO of an S&P 500 company earned 287 times more than their median employee.5 That is up from 41-to-1 in 1983.6Harvard Law Sch

31、ool Forum on Corporate Governance (15 November 2019) How and why human capital disclosures are evolvingThe Washington Post (20 March 2020) Some companies are reporting big raises. But theyre not real. 5 AFL-CIO (accessed 3 April 2020) PaywatchBloomberg (2 April 2020) KKRs $277,500 median employee sa

32、lary tops in private equity pay1. Top 20 CEO Pay Ratios, 2018CompanyMedian Worker PayPay RatioThe Gap, Inc.$5,8313,566:1Align Technology, Inc.$13,1803,168:1Aptiv Plc$5,4142,609:1McDonalds Corporation$7,4732,124:1VF Corp.$10,0991,767:1Linde Plc$40,6011,629:1The TJX Companies, Inc.$11,7911,596:1Discov

33、ery, Inc.$85,7041,511:1The Walt Disney Co.$46,1271,424:1Hanesbrands Inc.$6,3481,392:1Western Digital Corporation$10,0631,279:1Ross Stores, Inc.$10,0271,222:1Yum! Brands, Inc.$11,8651,181:1Norwegian Cruise Line Holdings Ltd.$20,1011,124:1T-Mobile US, Inc.$59,6531,116:1Walmart Inc.$21,9521,076:1Starbu

34、cks Corp.$12,7541,049:1The Coca-Cola Company$16,4401,016:1PVH Corp.$18,089943:1Dollar Tree, Inc.$11,250835:1Source: AFL-CIOAs investors, we can use human capital data points as a proxy for inequalityIn 2019, the US Census Bureau reported that the gap between the richest and poorest American househol

35、ds is larger than it has been in 50 years. And income inequality saw a significant increase in 2018 compared to 2017. Thus the CEO pay ratio may help provide some insight into this disparity. This is not a US-only situation, economic inequality has also risen in Europe gradually but surely since the

36、 mid-1980s.7 In the UK, the median disposable income for the bottom 20% fell 4.3% over the two years to April 2019 according to the UK Office for National Statistics. As the bite of COVID-19 spreads this should concern us even more because lower incomes tend to translate into lower consumer spending

37、.2. Full time workers are seeing stronger wage gains than part-time ones3.and the top 10% are seeing their incomes grow more quickly than the bottom 10% YrUS Wage growth by employment type65432101998 2001 2004 2007 2010 2013 2016 2019% Yr6543210%Real labour income growth: OECD1050-5-10-15-20Bottom 1

38、0%MeanTop 10%1050-5-10-15-20Usually full timeUsually part time2007-20102010-20142007-2014Source: Atlanta Fed Note: Based on survey of individual respondentsSource: OECDUK all-employee gender pay gaps higher than those of full- or part-time employeesUK gender pay gap data shows women under-represente

39、d in higher-paying jobsIn the UK, companies with more than 250 employees are legally required to report their gender pay gap figures by the end of their financial year. In 2019, the average gender pay gap was 17.3% for all employees. The gender pay gap among full-time employees was 8.9%.8 The gender

40、 pay gap is higher for all employees than for each of full-time employees and part-time employees because women fill more part-time jobs, which tend to have lower hourly median pay, and are more likely to be in lower-paid occupations.Carnegie Europe (4 February 2019) Are increasing inequalities thre

41、atening democracy in Europe? 8 UK Office of National Statistics (29 October 2019) Gender pay gap in the UK: 2019According to the UK Office of National Statistics, British women can expect to earn GBP263,000 less than men over their careers. In the two years since gender pay gap data became available

42、, the pay gap has narrowed at about half of private employers, while at the rest the difference has gotten worse or there have been no changes. The data does make it clear that women are under-represented in higher-paying jobs. Though some companies have already reported, 2020s gender pay gap report

43、ing deadline has been paused due to the COVID-19 pandemic.What other countries are doingAustralia requires companies with more than 100 employees to report their gender pay gap.9 In 2018, Germany passed a law that grants women the right to learn how their salary compares with men in corresponding jo

44、bs (and vice versa). The law applies to employers with more than 200 employees.10 The EU, which has an overall gender pay gap of 16%, was expected to release gender pay gap rules by the end of 2020.Annual % gender wage gap34.1%24.5%5.6%16.2%14.0%13.2%13.0%11.7%18.5%18.9%16.4%Average annual gender wa

45、ge gap35%30%25%20%15%10%5%0%Source: OECD, 2018 data or latest availableOver the horizon what is coming?In the USIn 2019, SEC chair Jay Clayton acknowledged that “the historical approach of disclosing only the costs of compensation and benefits often is not enough to fully understand the value and im

46、pact of human capital on the performance and future prospects of an organization.” In August 2019, the SEC proposed that it may move away from the 12 required items that must be included in the narrative description that accompanies financial statements (the number of employees is the only one of th

47、e 12 related to human capital).Instead, in line with a growing trend among global regulators, the SEC is considering adopting an approach where each company must discuss whatever is considered material. A more expansive definition of materiality should include more ESG content, in our view. The SEC

48、shared a list of items that it believes will apply to most companies including human capital and compliance with government regulations.11Bloomberg (3 April 2020) In pay gap between women and men, Britain keeps scoreFinancial Times (6 January 2018) German employers forced to reveal gender pay gapW (

49、6 November 2019) Human capital disclosure may soon be mandated by the SEC.and internationallyIn 2019, The International Organization for Standardization (ISO) released a standard on human capital reporting: ISO 30414.12 ISO 30414 provides 23 core metrics that it believes companies should be reportin

50、g and includes definitions, frameworks and rules. The metrics range from age and gender to ratio of income to human capital.ISO Human Capital StandardsISO CategoriesMetricsEthicsNumber and type of employee grievances filed; Number and type of concluded disciplinary actions; % of employees who have c

51、ompleted training on compliance and ethicsCostsTotal workforce costsWorkforce diversityAge, Gender, Disability, and Other indicators of diversity; diversity of the leadership teamLeadershipLeadership trust (tbd by surveying employees) Organizational safety, health and well-beingLTI; Number of occupa

52、tional accidents; fatalitiesProductivityEBIT/Revenue/Turnover/Profit per employee; and human capital ROI aka the ratio of income or revenue to human capital expenseRecruitment, mobility and turnoverAvg time to fill vacant positions, Avg time to fill critical positions;% of positions filled internall

53、y; % of critical positions filled internally; Turnover rateSkills and capabilitiesTotal development and training costsWorkforce availabilityNumber of employees; Full-time EquivalentsSource: ISOCompanies are asked to report these data as intangibles alongside other relevant performance data. While th

54、e ISO standard is voluntary, we believe that it is likely that European companies may adopt the standard.A note on self-reporting on human capitalCompanies decide what they discloseSelf-reporting Although some countries (France, Japan and Canada) require the disclosure of certain ESG metrics, more o

55、ften ESG data is self-reported. Thus we find that it may not be consistent in timing or format, and globally, small cap companies tend not to report much sustainability data. ESG data often also lags financial reporting. For example, as of March 2020, most companies have only disclosed 2018 data. As

56、 we noted earlier, reporting on human capital is not mandatory. Therefore, companies have the opportunity to present data from their perspective. It is up to the investor to supplement this information with outside data, from civil society or government, or from conversations with other company stak

57、eholders. Most ESG data are self-reported by companiesmeans that “skips” can be a good source of information for ESG investors Given that data is self-disclosed we find it helpful to focus on how selective companies are. For example, weve found that when a company selectively omits something that th

58、ere is often a reason behind it. For example, while a company that has made a recent acquisition might have a reason to skip reporting while it reconciles two different systems, a company that skips a data point that it previously consistently reported might have a less valid reason for not reportin

59、g it.ISO (15 January 2019) New ISO international standard for human capital reportingDiversity and genderGender is important because studies show that more women in management is correlated with better company performanceDiversity is dominated by gender because of a lack of reporting in other areasT

60、here are other diversity issues such as representation of minority and LGBT employees as well as those with disabilitiesDisclosure is diverseIn our report The Social Factor: A primer on social themes that drive investor value, 23 February 2018, we named diversity as one of our key themes. More so th