Episode 198

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Published on:

26th May 2026

AI and the human capital paradox

AI, Workplace Culture and Labor Rights: Why human capital risk is financially material

This week on The Greener Way, host Michelle Baltazar speaks with Emily DeMasi, regional team lead - North America EOS at Federated Hermes, about why human capital risks, such as workplace culture, harassment and violence, labour rights, and supply chain conditions, are financially material for investors through impacts on productivity, reputation, and long-term returns.

DeMasi explains how stewardship engagement assesses human capital using employee surveys, whistleblower mechanisms, and core disclosure metrics such as workforce size (including gig and contract workers), turnover, demographics, and total workforce cost.

They discuss AI’s double-edged impact, from efficiencies and training needs to job displacement anxiety and potential worker surveillance.

00:39 Why human capital matters

02:45 Workplace harassment as material risk

04:29 Do employee surveys work?

05:50 Investor engagement metrics

07:55 AI workforce disruption

11:13 Case studies

13:43 Best practice supply chain frameworks

16:18 Why stewardship is crucial

17:42 Looking ahead on AI and governance

We record on Gadigal land and we pay our respects to the traditional custodians of country and elders past and present.

https://www.fssustainability.com.au/



This podcast uses the following third-party services for analysis:

OP3 - https://op3.dev/privacy
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About the Podcast

The Greener Way
Conversations about people, planet and profit-for-purpose in a complex world, brought to you by the publishers of FS Sustainability.
The Greener Way is your podcast for exploring the big environmental, social and governance questions. Each week, The Greener Way will focus on deep conversations with investment and corporate experts who are deeply engaged in managing the sustainability challenges facing our planet.

From climate change to biodiversity, human rights and modern slavery to corporate purpose and governance, we tackle head-on the nuances and trade-offs of our complicated world.

The Greener Way is the podcast of FS Sustainability, the premier weekly trade publication that covers how investors and companies are changing real world outcomes across environmental, social and governance issues.