Materiality of Labour Issues in Credit Driving Investor, Regulatory Calls for Disclosures

Tue 07 Dec, 2021

Investor-led support for more clarity on labour-related ESG risks is driving an increase in regulatory and voluntary disclosure frameworks. The push for more consistent, quantitative reporting will allow fixed-income investors and analysts to better evaluate the materiality of workforce risks to bond issuers.

Fitch’s ESG Relevance Score (ESG.RS) framework includes two labour-related general issues: Labour Relations and Practices, which considers pay and benefits, recruitment and retention, collective bargaining, and supply-chain labour; and Employee Wellbeing, which includes health and safety and employee engagement. These issues are relevant to entities in a wide range of sectors and asset classes – corporates, public finance, financial institutions, infrastructure and structured finance.

For the full analysis, please see the special report published on 17 November 2021 at

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