BNY Mellon's "Disclosure on Gender Diversity" discusses institutional investors' heightened focus on corporate board and workforce diversity, and suggests best practices and disclosure that are responsive to investor interest in this topic. The article also identifies various sources companies can consult to learn more about investor expectations, and information sources investors consult to help benchmark company practices across their portfolio.
Disclosure and associated best practice suggestions include:
- Identifying a senior executive with responsibility for implementing the company's diversity strategy to mitigate behavioral bias at both the management and board levels
- Disclosure of internal programs to improve gender diversity, which should include specific examples of training and developing women
- Disclosure of organizational metrics - such as diversity and inclusion goals, targets, and quotas - with consideration of linkage to executive compensation
- Disclosure of specific HR initiatives aimed at improving work-life balance, such as flexible working hours or a progressive parental leave program
Among the gender advocacy investor networks and coalitions identified are the 30% Club and the Workforce Disclosure Initiative. Companies are advised to review investors' voting guidelines, stewardship reports and policies to understand their particular areas of focus, and to be cognizant of the rating agencies (e.g., MSCI ESG Research, ISS, Sustainalytics) that investors use to inform their perspectives.
Access additional information & resources on our Board Diversity, Human Capital/Workforce Management, and Institutional Investors pages. This post first appeared in the weekly Society Alert!