The Workforce Disclosure Initiative (WDI)
Since 2018, Castlefield has actively supported the Workforce Disclosure Initiative (WDI), which aims to increase corporate reporting and transparency on workforce and supply chain issues. The International Sustainability Standards Board (ISSB) is moving sustainability disclosures towards greater levels of convergence, and as mandatory reporting increases, the WDI will be vital in ensuring that workforce issues, and social data more generally, aren’t overlooked.
"As mandatory reporting increases, the WDI will be vital in ensuring that workforce issues, and social data more generally, aren’t overlooked."
The survey provides companies and investors with comprehensive and comparable data covering a range of areas, including but not limited to health and safety, diversity and inclusion, human rights, and employee wellbeing. There are currently 63 investor signatories to the WDI, all sharing a desire for better, and more consistent reporting on employee practices.
This year, we contacted 13 companies encouraging them to complete the WDI survey, six of which had not previously featured on the WDI’s target list. Four companies subsequently confirmed participation in the survey, three of which are first-time responders. One further company stressed that they were allowing a recently appointed board member the opportunity to take a deeper look into the survey and will aim to participate next year. Common reasons for declining participation included a growing volume of non-financial reporting requirements, such as the EU’s Corporate Sustainability Reporting Directive (CSRD), coupled with a lack of capacity to keep up to speed with this growing workstream.
"The origins of WDI derive from investor frustration at the lack of available standardised and comparable corporate workforce information."
The origins of WDI derive from investor frustration at the lack of available standardised and comparable corporate workforce information, which made it difficult to evaluate prospective and investee companies. In addition, recent events only add to the urgency of understanding and protecting workforces. High inflation, for example, has eroded workers' real wages and 71 million more people have been pushed into poverty around the world as inequality has further increased.[1] The business case is also clear, as good management of people is essential for a company’s reputation, resilience and long-term success.[2]
"Good management of people is essential for a company’s reputation, resilience and long-term success."[2]
Collaborative engagement is an effective tool, which enables us to work with other investors to amplify our voice and encourage companies to take effective action on a wide range of ESG issues. We look forward to our continuing involvement with the WDI investor coalition, encouraging investee companies to take concrete steps to strengthen its disclosures and improve working conditions.
References:
1. WDI 2022 report.
2. ShareAction | Become an investor signatory - Workforce Disclosure…