The Bloomberg Gender-Equality Index (GEI), now in its seventh reporting cycle, recently released its 2022 list of public companies that are committed to advancing women’s equality. This year the GEI included 418 global companies in 45 countries and regions, with Colombia, Peru, Pakistan, and Uruguay now being represented.
As multiple studies are revealing, COVID-19 has had both a broad and deep impact, which Bloomberg Chairman Peter T. Grauer addressed in his published letter about the 2022 GEI.
“One issue on which immediate action is needed is the disproportionate negative effect of the COVID-19 work environment on women and people of color. The daily examples of this crisis—inclusive workforce depletion, financial inequality and the impacts on company performance–strengthen the business case for diversity,” stated Grauer.
He specifically highlights the growth of Environmental, Social and Governance (ESG) assets—which are investments made by stakeholders based on their personal values. Projections indicate that one third of total global assets will be ESG assets, reaching $140.5 trillion by 2025 from $38 trillion this year—of which women focused assets are growing.
The GEI has a role in quantifying the social element of a company’s ESG data—meeting the need for data transparency, standardization, and performance of corporate ESG factors—marking each company’s path to gender equality.
Progress is being seen in the area of diversity, both at the boardroom level as well as across all levels of the corporation. When assessing the GEI member companies, on average, their boards are comprised of 31% women, and 72% of the member companies have a Chief Diversity Officer or an executive with the primary responsibility of diversity & inclusion. Also, on average, 39% of women are in revenue-producing roles and 61% of members require a gender-diverse slate of candidates for management positions.
Industries are also working toward gender equality, and leaders like those at the GEI, are focusing on data to drive their messages and their actions. One example is the industry study conducted by Deloitte and Automotive News Reports on diversity and gender equality in the automotive industry where it remains a challenge.
Overall, the GEI see strides being made on gender equality around the world with a record number of companies disclosing their data via the GEI Framework. Disclosures rose 20% year-over-year, encompassing five key pillars: female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, anti-sexual harassment policies, and pro-women brand.
The ongoing rise in the number of disclosing companies that share their gender-related social metrics to the GEI reflects their growing dedication to improve their metrics, and most importantly, to give more opportunity to diverse talent within their organizations.
Patricia Torres, Global Head of Bloomberg Sustainable Finance Solutions at Bloomberg, explains the importance of receiving more disclosed data, “The GEI framework helps companies assess their progress relative to their peers, and in relation to their own goals. In turn, the GEI data gives investors a comprehensive dataset to help evaluate how best practices in gender equity are contributing to company performance across a variety of factors.”
The GEI recognizes that greater opportunities for professional women begin with the recruiting, hiring, and retention processes at both member and non-member companies. In comparison to non-member companies, GEI members on average hire more women, with 83% having a direct strategy for recruiting women. The data also reveals that 66% conduct global gender-based compensation reviews—making it more likely for them to have family-friendly policies such as the 75% that offer on-site lactation rooms for new mothers and 59% who provide childcare subsidies or other financial support.
In addition, GEI member companies are positively impacting their communities through their inclusive corporate policies. More than 63% of member companies sponsor financial education programs for women, and 65% sponsor programs dedicated to educating women in STEM.
The listing of companies dedicated to gender equality in The Bloomberg Gender Equality Index is one of a growing number of initiatives that support this area of social change. This past summer Melinda French Gates announced a $2.1 billion Fund to advocate gender equality in the post-pandemic world. Her initiative follows California and Washington states passing legislation that mandates gender diversity on boards.
