BNP Paribas AM wants more women to be in higher positions. To achieve this, it uses target stats. In the United States, Europe, Australia, New Zealand and South Africa, BNP Paribas Asset Management (AM) wants at least 30 percent of women on board boards. The property manager has a 15 percent target for Asia, South America, Africa and the Middle East.
Even if a company proposes a new male director at a shareholders meeting, the BNP will vote against Paribas AM if there are still a few women on the board. In 2021, the organization rejected the appointment of 37 percent of directors for that reason. The Asset Manager is the most rigorous in Asia because it was the first time it started working with a 15 per cent limit. As a result, the property manager voted against appointing 57 percent of board members to Japanese companies.
The property manager not only clarifies his opinion by voting, but also enters into discussions with companies. In 2021, BNP Paribas AM negotiated with 36 companies. Thirteen of them later embraced.
Diversity makes money
It is profitable to have women on the company board. This was revealed in a study conducted by a consultancy called McKinsey. Boards with more than 30 percent women are financially better than companies with fewer or no women.
BNP Paribas AM aims to have at least 40 percent women on the board by 2025. “When we reach 40 percent, we think the job is done,” Michael Herskovich of BNP Paribas AM said in an earlier interview.
Read more: Companies with women at the top perform better financially, however diversity is not the norm. How?
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