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Press release: "Report Reveals Gaps in Social Performance Metrics Needed By Investors to Identify Leading Companies"
Putting the ‘S’ in ESG: Measuring Human Rights Performance for Investors...examines 12 leading frameworks for assessing companies’ social practices and impacts. It finds that current measurement is overly deferential to companies to voluntarily disclose the efforts they undertake on a wide range of poorly defined “social” activities, rather than measuring their real-world effects. The report outlines several principles for improving companies’ social measurement:
- Shift measurement from companies’ social policies and practices to the effects these are having on workers and communities on the ground
- Diversify data sources
- Develop clear standards that enable comparisons of industry competitors using a common framework
- Target investors as the primary audience