Capitals Framework

Human capital

Our human capital analysis focuses on the externalities generated by businesses that impact employees, drawing heavily on our methodology for evaluating corporate cultures.

2022 M08 3

9 minutes

Stephanie Niven
Sam Anthony
Our human capital analysis focuses on the externalities generated by businesses that impact employees, drawing heavily on our methodology for evaluating corporate cultures.
Stephanie Niven
Portfoliomanager
Sam Anthony
Analyst

The fast view

  • Companies are increasingly being held to account for their impacts on society and the environment, influencing their growth and profitability.
  • Investors need new tools to evaluate these impacts, or ‘externalities’, and hence identify opportunities and risks that the market may have mispriced.
  • The Sustainable Equity team has developed a Capitals Framework to assess a wide range of externalities. The framework is an intrinsic component of the investment processes of all the team’s sustainable strategies.
  • We assess different categories of externalities. This paper introduces the framework we use to do this and then focuses on how we analyse human capital externalities.

 

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