A study by Martin Zafiryadis, PhD fellow at Copenhagen Business School, found that more informative human capital disclosures from US companies “lead to incrementally significant increases in investments” from members of the Human Capital Management Coalition (HCMC) – a coalition of asset owners.
Similarly, lower levels of disclosures result in incrementally significant decreasing levels of investments.
The report reads: “The findings demonstrate that the increased availability of ESG disclosures enhances ESG investors’ ability to align their equity portfolios with firms’ actual ESG performance.”