Bloomberg has released the 2022 Gender Equality Index (GEI), which includes 418 companies representing a combined market capitalisation of US$16 trillion and headquartered in 45 countries and regions.
This is an increase of 20 per cent year-on-year of the index’s members list.
Bloomberg attributed this spike in reporting ESG data to recognition that the global business community could lead the change by committing to more transparent reporting and disclosure of social data.
The GEI aims to bring transparency to gender-related practices and policies at publicly listed companies around the world, increasing the breadth and depth of environmental, social and governance (ESG) data available to investors.
The GEI framework scores companies across five key pillars, including female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, anti-sexual harassment policies, and pro-women brand.
There are also expanded areas of information requested to support the broader goal of providing additional ESG data to investors, with GEI disclosure data now contributing to Bloomberg’s equal employment opportunity data, including race and ethnicity demographics from US companies that disclose this as part of their reporting requirements to the Equal Employment Opportunity Commission.
Locally, Australian banks have continued to dominate representation, with the Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and Westpac Banking Corp included in the list.
Other Australian companies on the list are QBE Insurance Group, Scentre Group, St Barbara Ltd, Incitec Pivot Ltd, NIB Holdings Ltd and Nine Entertainment Co Holdings.
According to the data on diversity in the boardroom and across all levels of the corporation, on average, women comprise 31 per cent of GEI members’ boards, while 72 per cent of the member companies have a chief diversity officer or an executive with the primary responsibility of diversity and inclusion.
These companies have an average of 39 per cent of women in revenue-producing roles and more than half (61 per cent) require a gender-diverse slate of candidates for management positions.
“Today’s business leaders have the opportunity to drive progress on gender equality for years to come,” said Patricia Torres, global head of Bloomberg Sustainable Finance Solutions.
“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.”
Another key metric in the data was recruiting, hiring and retention processes at member firms. On average, GEI members hire more women, with 83 per cent of these firms having a direct strategy for recruiting women, and 66 per cent of them conducting global gender-based compensation reviews.
These companies are also more likely to adopt family-friendly policies, with the index revealing that 75 per cent of member companies offer on-site lactation rooms for new mothers, while 59 per cent provide childcare subsidies or other financial support.
This year’s GEI data also showed that communities are benefiting from inclusive corporate policies, with 63 per cent of member firms sponsoring financial education programs for women, while 65 per cent sponsor programs dedicated to educating women in science, technology engineering and mathematics (STEM).
On average, 31 per cent of GEI company boards are comprised of women, while 31 companies have a female CEO or equivalent, and 23 per cent are female executives.
GEI member companies are hiring more women than they are losing, while 78 per cent have a strategy for recruiting women.
Two-thirds (66 per cent) conduct a global, gender-based compensation review, with 87 per cent publishing their global results by gender.
Meanwhile, 67 per cent of managers are required to complete unconscious bias training annually.
The 2022 reporting framework assessed how companies have tackled challenges spurred by the coronavirus pandemic, stating: “The disproportionate effect of the COVID-19 working environment specifically on women and people of colour, and the ongoing call to action of global social movements fortify our goal of building the business case for diversity.”
The majority of companies (99 per cent) maintained or enhanced their flexible working conditions to support the transition to remote work while 94 per cent offered support services ranging from personal protective equipment for essential employees, monetary support for ergonomic office supplies, to a variety of consultation service supporting mental health. More than three-quarters (76 per cent) have been offering paid time off specifically for bereavement.
“The changing nature of work due to the pandemic has highlighted the importance of addressing gender equality issues in a rapidly-evolving global workforce,” chairman of Bloomberg Peter T. Grauer said.
“The Bloomberg Gender-Equality Index recognises companies that are maintaining a strong focus on providing an inclusive work environment that supports the evolving needs of employees and retains the competitive strengths gained through gender diversity, which is increasingly critical in this challenging business environment.”
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