A coalition of 79 institutional investors from 10 countries, with nearly $8 trillion assets under management, coordinated by the responsible investment group, ShareAction, have backed a demand that companies disclose more information on how they manage their global workforces.

The investors, which include Schroders, HSBC Asset Management, Axa Investment Managers, Legal and General IM, Nordea, APG, and  AustralianSuper, are signatories of the Workforce Disclosure Initiative (WDI), a project devised by ShareAction. They have lent their support to the WDI survey, which builds on the framework developed by the UK's Pensions and Lifetime Savings Association, and has been sent to 75 global companies - from the  FTSE 50 and 25 mega cap companies listed on global stock exchanges.

Catherine Howarth, chief executive of ShareAction said: "We’re delighted that major investors want to work together to secure the data they need to properly understand this critical aspect of company performance and corporate impact. The Workforce Disclosure Initiative will enable investors and companies to make measurable progress on Sustainable Development Goal 8 which targets decent work for all."

 The WDI is modelled on the approach of the Carbon Disclosure Project. The survey attempts to develop indicators that cover the entire workforce. For example, the WDI survey asks questions on the composition of the workforce in companies’ direct operations and in their supply chains.

Questions include both standard metrics where companies are expected to provide quantitative data, alongside narrative questions on how this data relates to the company’s overall business strategy. While it is recognised that companies face specific individual and sector-based risks and opportunities, the questions asked are intended to capture the most fundamental risks and opportunities which are relevant to all companies.

ShareAction said the quality of disclosures from companies about workforce management is both weak and inconsistent between comparable firms. The data generated will allow investors to engage with companies in support of smart management of ‘human capital’ as well as about their exposure to the risks of poor workforce practices. The lack of comparable data disclosed by companies is cited as a major barrier to such investor engagement at present.

Jeannette Andrews, corporate governance manager, Legal & General Investment Management, said: “As a large and long-term investor, information on a company’s culture and employee engagement is important to understand the sustainability of business practices and long-term prospects. The WDI provides this disclosure on a consistent and comparable basis, and is therefore an extremely useful format for LGIM to integrate into its assessment of company performance.”

ShareAction said this survey would add to growing momentum for corporate transparency on social issues, which it said had often taken a back seat to environmental and governance risks. Some firms have already moved towards further disclosure of workforce information while legislation like the 2015 UK Modern Slavery Act and the 2014 EU Non-Financial Reporting Directive had also mandated companies to disclose more.