Batirente

 

Investors put gender on the agenda2010-08-19

A coalition of global investors managing over US$ 73 billion of assets today called on companies across the world to increase representation of qualified women on boards of directors and in senior management.

The investors are responding to a survey of 4,200 global companies that found only 9.4 per cent of directors on corporate boards were women. This is despite numerous studies suggesting that companies with more women in senior management have superior financial performance or higher earnings quality.

These findings have led a number of mainstream investors to identify gender balance and diversity as a strategic issue in their investment activity. The investors in this new coalition have asked 54 selected companies from across the business spectrum for greater clarity about gender balance within their organisations.  

They hope to increase the representation of women on boards of directors and in senior positions to ensure companies benefit from the potential for enhanced business performance such a cultural shift offers. 

The members of the coalition are all signatories to the UN-backed Principles for Responsible Investment (PRI) and the investor initiative is a response to the Women’s Empowerment Principles^[1] recently developed by the United Nations Development Fund for Women (UNIFEM) and the United Nations Global Compact. The Women’s Empowerment Principles are designed to help companies take specific steps to advance and empower women in the workplace, marketplace and community. 

James Gifford, Executive Director of the PRI Initiative said,
“This engagement shows that gender balance within senior corporate management is not just a social issue but also a shareholder issue. In an increasingly complex global marketplace, companies that effectively attract, hire, retain, and promote women are often better equipped to capitalise on competitive opportunities than those who do not.” 

François Meloche, Extrafinancial Risks Manager, Bâtirente,
“We think that companies with diversity on boards, in terms of both gender and experience, are better long term investments. There is a correlation between financial performance and board diversity. “

Dermot Foley, Strategic Analyst, Vancity Investment Management,
“In Canada, only 10 per cent of Board seats are held by women, and in the top 60 publicly traded companies, there are no women CEO’s.^[2] A diversity of perspectives on the Board and in management leads to better decision-making and improves the quality of governance. As Canada’s population and economy changes, diverse companies will also be better equipped to compete for employees, customers and clients. At Vancity, we strongly believe in being leaders in diversity, with 11 of our 18 Board and Executive positions held by women, and are working hard to encourage others to do the same.“