2022-069 – Talent Development Credits

Background
Currently, investors, consumers, and employees evaluate a company or organization’s environmental,social, and governance (ESG) performance in order to make decisions about whether or not to invest in,purchase from or work at a particular entity. An ESG profile can lead to an increase in investors, productdemand, and capital availability. One particular strategy to achieve positive ESG outcomes is thepurchase of carbon credits to offset gaps between current environmental outputs and longer-term goalsof reaching carbon neutrality. Despite the effectiveness of this strategy for environmental outcomes,companies do not have a similar mechanism to immediately offset gaps between current reality andlonger-term aspirations related to diversity (e.g., racial/ethnic, gender, etc.) in the workplace andextended workforce. To advance a more diverse workplace, companies have invested in diversity,equity, and inclusion (DEI) initiatives, including recruiting and promoting more people of color andwomen, but progress is slow. Therefore, there is a present market need for a strategy that offerscompanies the opportunity to immediately take action towards their human capital-related ESGstrategic objectives. Talent Development Credits (TDCs) help organizations that seek to bridge gaps inhuman capital-related components of their ESG efforts by providing a quantified, verified mechanism tobalance their current workforce; at the same time, credits provide critical funding to higher educationinstitutions to advance the recruitment, retention, graduation and placement rates of women andunderrepresented minorities in targeted fields.

Technology Description
To meet the aforementioned need, TDCs help companies bridge their talent gaps as they work toachieve their human capital strategic goals. TDCs are generated using an algorithm based on publiclyavailable data and tracked on a blockchain-based system to ensure transparency, traceability, and auditability.Companies will be able to purchase a specific number of TDCs from verified activities at selecthigher education institutions, allowing quicker advancement towards their diversity-related humancapital ESG goals. One TDC is equal to the development of one student from a target group (e.g., womenengineering students, Black or Latinx business students, etc.) at a participating institution.

Advantages

  • Offers a standardized method for acquiring TDCs, which address diversity-related human capitalgaps.
  • Enables companies to:
    • Purchase a specific number of TDCs from verified activities at participating institutions;
    • Advance towards impactful diversity-related human capital ESG goals.
  • Provides an indirect mechanism for educational institutions to:
    • Increase their capacity to develop more diverse talent.
    • Create more pathways (e.g., scholarships, outreach programs, etc.) to education forwomen and underrepresented minorities.
    • Increase recruitment, retention, graduation and placement rates among women andunderrepresented minorities through investment in critical support services.

Potential Applications

  • Educational institutions, especially Minority-Majority MSIs, including but not limited to:
    • Historically Black Colleges and Universities
    • Hispanic Serving Institutions
    • Tribal Colleges and Universities
    • Asian American and Pacific Islander Serving Institutions
    • All educational institutions that receive federal funding
  • Diversity, Equity, and Inclusion (DEI) Initiatives
  • Research Institutions

Contact Information

Name: Andrew Roerick

Email: aroerick@innovations.unm.edu

Phone: 505-277-0608