The IIRC welcomes the launch this week of the Social & Human Capital Coalition at a global event hosted by the World Business Council for Sustainable Development (WBCSD). CEO Richard Howitt was present at a meeting today in Montreux to launch the Coalition and consult on the Social & Human Capital Protocol. This development is advancing multi-capital thinking for business.
We commend the role of the WBCSD as host of the initiative and congratulate the new Executive Director, Mike Wallace, who is also connected to the integrated reporting movement through his role on the IIRC’s US working group.
The IIRC shares with the Coalition the importance of organizations taking more than financial information into consideration and applying integrated thinking in their decision making. The development of a protocol for social and human capitals will assist organizations to value them more clearly in their strategy and business models. The IIRC has been a member of the advisory group that has informed the development of the new Coalition.
This initiative follows the development of the Natural Capital Coalition and the Natural Capital Protocol. We welcome the potential for close collaboration and common approaches to enable the development of further integrated guidance relating to the capitals. It is consistent with the IIRC’s overall concept of a multi-capitalist approach to value creation, which includes financial, intellectual and manufactured capitals in addition to natural, human and social & relationship capitals.
We believe the protocols are complementary to the International Framework. By adopting both the protocols and the Framework, organizations are able to make changes to the way they work and create value for both themselves, their people and society, while conserving and enhancing the natural world. They are also able to communicate with their providers of financial capital and wider stakeholders on their strategy, opportunities and risks in a concise and integrated way. This will enable capital markets to access more meaningful information to achieve more efficient and productive capital allocation decisions and greater financial stability.
Commenting on the development, Richard Howitt, CEO of the IIRC, said, ‘We welcome this initiative as a step forward for business in understanding and measuring the capitals in the context of the value created by organizations for themselves and for others. We welcome in particular approaches, such as the protocols, that offer practical solutions that enhance integrated thinking. This in turn will strengthen the ability of organizations to communicate clearly about how they create value, enhance decision-making and facilitate better dialogue with investors. We encourage our stakeholders to provide feedback on the Social & Human Capital Protocol.’
Follow this link on the IIRC and the Natural Capital Coalition.