Racial Equality Impact Goal forms part of a company’s diversity & inclusion considerations, similar to the LGBTQ Inclusion and Gender Equality goals. In particular, racial equality will occur when companies practice equal hiring and offer employment opportunities to persons of all races, and regardless of skin color, background, and ethnicities in an environment that is free of discrimination.
When scoring a company on the Racial Equality impact goal, the following underlying Sustainability Accounting Standards Board (SASB) factors are considered:
- Employee Engagement, Diversity & Inclusion: The ability to ensure that culture, hiring and promotion practices embrace a diverse and inclusive workforce. Addresses issues of discrimination based on race, gender, ethnicity, religion, sexual orientation, and/or other factors.
- Employee Health & Safety: The ability to create and maintain a safe and healthy workplace free of injuries, fatalities, and illness. Done through implementing safety management plans and developing training requirements for employees and contractors. Also ensures the physical and mental health of employees through training, culture, regulatory compliance, and PPE.
- Labor Practices: The ability to uphold commonly accepted labor standards, labor laws, and internationally accepted norms and standards. This includes basic human rights related to child labor, forced labor, fair and minimum wages, overtime pay, and benefits. Finally, the relationship between organized labor and freedom of association.
The SASB is a non-profit organization founded in 2011 to help businesses and investors develop a common language about the financial impacts of sustainability. To learn more, see https://www.sasb.org/about/
To learn more about the Impact Scoring methodology, see How are Impact scores calculated?