Human capital and culture have been consistent topics during our ongoing engagements with Bank of America (BoA) management and board leaders. These discussions have covered: pay strategies and the firm’s minimum wage for US workers, diversity and inclusion, pay equity and the board’s role in overseeing culture, among other topics. While the insights from these discussions have been informative, we identified opportunities for BoA to bring these topics together in a single narrative highlighting the depth and breadth of these activities.
In November 2019, Bank of America released its first Human Capital Management Report, Being a Great Place to Work, which enabled State Street Global Advisors to discuss with the company how the initiatives highlighted in the report aligned with a responsible growth strategy. For instance, BoA explained that its commitment to increase the minimum wage for US workers from $17/hr to $20/hr in the first quarter of 2020 was accounted for in its strategic focus on expense discipline.
We encourage companies to disclose material ESG information in a cohesive manner using Sustainability Accounting Standards Board (SASB) Sustainability Accounting Standard as a starting point. It is equally important for companies to address the connection between the information disclosed and long-term strategy.