ABSTRACT
This chapter aims to analyze the effect of human capital strategies have on long-term profitability, productivity, and overall sustainability. Human capital, a social factor in environmental, social, and governance analysis, is fundamentally important to sustainability in that some level of human knowledge and skills is necessary for organizations to accomplish much of anything. The recruitment of talented people, evaluation and retention of employees, a dedicated focus on diversity and inclusion, and the application of analytics to the workforce are key components of an organization's human capital strategy and are of interest when considering the implications on a company's long-term sustainability. Additionally, by better understanding individual contributions on a consistent basis, companies are better able to align rewards with performance, allowing organizations to better identify and retain quality individuals. By including the quality of an organization's diversity strategy into their selection criteria, investors can more accurately identify sustainable companies with the potential for above average future performance.
