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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Integrated Reporting Framework, Global Reporting Initiative Framework and Business Responsibility and Sustainability Reporting

Himalaya Textiles Ltd prepares an integrated report. Its report describes how it uses skilled weavers, patents on dyeing methods, and a brand reputation built over decades. Which of the six capitals in the IR Framework does the skilled workforce primarily fall under?

The skilled weavers are human capital. The IR Framework defines human capital as people's competencies, capabilities, experience and motivation to innovate. Patents and brand belong to intellectual capital, and stakeholder trust belongs to social and relationship capital, so the workforce is not classified there.

  1. AHuman capitalCorrect
  2. BIntellectual capital
  3. CSocial and relationship capital
  4. DManufactured capital

Explanation

Under the IR Framework, human capital covers people's competencies, capabilities and experience and their motivation to innovate. Patents fall under intellectual capital and brand reputation relates to relationships or intellectual capital, so the workforce is human capital.

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