HUMAN CAPITAL AS AN ASSET: Recommendations to support better PAGE 25 AN ACCOUNTING FRAMEWORK FOR THE NEW WORLD OF WORK decision-making A FRAMEWORK FOR HUMAN CAPITAL ACCOUNTING An accounting framework for human capital that reflects the guiding principles needs to extend beyond currently available metrics. A framework for such an expansion was articulated this year by the IBC. Its report affirms and applies the notion that society is best served by corporations aligning their objectives with societal goals. The metrics that reflect progress towards those goals must be embedded in ESG considerations. In application, the IBC report proposes a comprehensive metrics framework, containing both current and recommended future indicators, organized around four pillars: principles of governance, planet, people and prosperity. The metrics in the people pillar relate to promoting individual dignity, well-being and the ability to realize human potential through work. Measures focus on labour force representation by gender and diversity groups, pay equity and injury rates. Additional metrics targeting dignity and health include: involvement in company well-being programmes; current pay practices in relation to living wages; and skilled worker shortages and training budgets. Alongside such measures, we propose three key human capital metrics that companies can use to drive long-term value creation. These could also be purposed to improve reporting, including through incorporation into ESG frameworks.