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Companies with women above perform better financially on average, but diversity is not yet the norm. How?

More than 135 years to close the economic gap between men and women, Calculated by the World Economic Forum In March. Previously, the system was thought to be 99 years old, but Kovit-19 worsened expectations. One reason for this is that women are more likely to work in sectors where women are most affected Locks, As well as being overburdened with caring for family.

The report tracks progress in four areas: economic participation and opportunities; Education; Health and political activity. In the report, the World Economic Forum identifies a number of factors that will accelerate the process, including the formulation of strategies and policies to improve equal hiring practices. Michael Herskovich, head of the global task force at BNP Paribas Property Management, says financial institutions could play a role. “As an investor, you can induce change by voting.” He cites the voting rights held by investors at annual shareholder meetings as shareholders of listed companies. At those meetings, these types of companies are forced to account to shareholders.

How can a partner contribute to the above diversity

For many years, BNP Paribas has been considering asset management diversity when voting on appointing new board members at shareholder meetings. In 2019, the property manager will policy this approach and actively promote voting choices. For example, since 2019, BNP Paribas has voted against any male candidate for the position of director if there are no women on the company’s board of directors around the world.

As for Europe, North America, Australia and New Zealand, the property manager has tightened this strategy further by 2020: there should be at least 30 percent women in the group. Accordingly, the property manager votes against appointing male board members if the board does not have at least 20 percent women.

In some cases, BNP Paribas Asset Management makes an exception, for example if a company makes clear progress, but does not reach the right figures. “It allows companies to enter into dialogue and encourages them to improve.”

Also, requirements are low for some areas. Herskovich, for example, insists that it makes sense to target 30 percent of women on the boards of Japanese and South Korean companies, but that this practice also plays a role in these practices. “We have to be tougher than the practice in practice because we believe this is an important theme. At the same time, we need to strike a good balance between investing in any company and being strict.” For example, Japanese and South Korean boards have an average of 6 percent women. Initially, BNP Paribas Asset Management targeted at least one woman in Asian and Latin American companies, and now 80 per cent of the companies that invest in asset managers meet these requirements, increasing its ambitions and now it is targeting 15 per cent.

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Diversity: Social and financial desirable

Herskovich is behind the diversity approach. “When you have a lot of difference in background, gender, nationality, expertise, it offers multiple perspectives and it enhances collective decision making. That is the strong hope we have. It is good to take different opinions into account when making decisions. When there are people from different backgrounds in a group, it is easy to disagree with each other. ”

‘When you have more diversity, the collective decision-making process improves.’

From Review by Consultant McKinsey Increasing opportunities for women and other disadvantaged groups shows that it is good for the economy. Contrary to the fears that economic growth is at the expense of economic growth, our research supports the idea that economic growth is best when economic research is most inclusive. On the contrary, inequality and economic exclusion threaten economic growth, ”writes Bob Sternfels, senior adviser to the adviser, in the preface to the report. Diversity Success: How Important Additions Are.

Management groups that make up more than 30 percent of the total women perform better financially on average than women, with or without less, McKinsey writes In the statement. Herskovich is not surprised by these results. “But studies that show this are always good.” He hopes that more women in boardrooms will lead to an increase in the number of women at other levels as well. “This will help achieve greater diversity throughout the system.”

Gone are the days

Despite the added value of having more women on board, there is still a long way to go. It is true that 60 per cent of BNP Paribas Asset Management in North American companies fulfill the desire that 30 per cent of directors should be women. But by 2025, the property manager wants this number to be 40 percent. “When we’re 40 percent, we think we’ve done that job,” Herskovich says.

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He believes that stakeholders and local governments play a key role in enacting laws and pursuing greater diversity. “If more investors follow this kind of policy, it will move companies faster. We want them to go faster because they still have a long way to go. There is a big improvement compared to five to ten years ago, but we still have to achieve balance or equality in governance. We are a long way off. ”

Also read the speeches of Nicolet Lunen and Marlene Johnson Crossbeek: Bankers and Investors Must Save the World

Act on the word

BNP Paribas Property Management not only encourages companies to invest in hiring more women, but also uses this vision in its own company. Currently, The Admin Panel BNP Paribas for 30 per cent women. In four years, that too should be 40 percent. Last month, employees followed a compulsory diversity course. “So this is really part of our strategy. Not just as an investor, but within the company. So the reason why we pursue diversity applies to our own behavior as well.”

Also read Lynn Zepeda’s interview with her company on the impact of climate change and social inequality. “I strive for an approach that recognizes differences and living experiences, but there is no difference in the board room.”

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