Gender diversity What makes a company gender-diverse?

Is it enough for investors to focus on the ratio of women on corporate boards as a marker of better company performance?

25 Feb 2018

Is it enough for investors to focus on the ratio of women on corporate boards as a marker of better company performance?

In this article, we discuss the association between greater diversity and greater profitability. This has prompted the development of several indices focusing on gender or diversity issues in order to meet growing investor demand.

The most recent index launch was the Solactive Equileap Gender Equality 100 Leaders Index, which has been designed to track the leading companies in sustainability and gender diversity and it is this index which UBS Asset Management has chosen to track with the recently launched UBS Gender Equality ETF.

Equileap Research - What makes a company gender-diverse?

So how does Equileap assess and evaluate diversity? By carrying out an annual program of research and scoring, it ranks over 3’000 public companies from 23 countries using 19 metrics to measure their progress towards gender equality.

The criteria are centered on four themes. What Equileap’s approach, and the performance of the Solactive Equileap Global Gender Equality 100 Leaders vs the MSCI World benchmark, reflects is our central thesis: if investors are looking for gender diversity as a means of delivering better returns then it is imperative that they look at levels of gender equality at all levels of a company. Outperformance cannot be generated in the boardroom alone.


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