December 2021 – Women and ESG Investing

Many companies understand that a diverse workforce can enhance innovation and in turn profitability. A McKinsey study found companies with executive teams in the top quartile for gender diversity were 25% more likely to have above-average profitability than companies in the bottom quartile. Companies with more women in executive roles and in the board room, stand to benefit from a range of financial, social and reputational advantages.

The newest SEC staff interpretation relating to shareholder proposals is poised to make it easier for ESG issues to get onto the ballot at company annual meetings. While terms like \”diversity,\” \”inclusion,\” and \”gender lens investing\” are becoming part of corporate and investing vocabulary, implementation of the values for which those concepts stand is far from complete.

Women are looking to sustainable investing to help them express their care for the climate, for low-income communities, and for global health, knowing that all of these things are interconnected. They understand that gender diversity starts at the top. As companies hire more women and include more diversity in their upper management and on their boards, the organizations realize both better balance and better financial results.