European companies lead on board-level gender diversity

Europe is leading gender diversity league tables, according to Fitch Ratings, with nine European countries achieving the highest proportion of females at board level among a global top ten. Companies in Asia and Latin America are “lagging behind”, Fitch says. Fitch says regulation has been the key driver of change in board gender diversity. But it says “more effort is required to promote greater representation across countries and sectors”. Iceland recorded the highest average proportion of non-male board members at its companies with 51.3%, followed by France at 42.9% and Norway at 42.5%. Canada is the only country outside Europe to poll in the top ten (41.8%), with China falling just outside in 11th place (38.3%). Companies in Saudi Arabia, United Arab Emirates, South Korea, Mexico, Chile and Brazil ranked among the lowest for board gender diversity. Fitch expects Europe to continue leading the trend for greater gender diversity, with the EU’s Directive on Gender-Balanced Boards requiring listed companies in Europe to have women in 40% of non-executive director roles by June 2026. Publishing ESG Ratings Insights: Gender Diversity Metrics and Trends, Fitch also reveals that two-thirds of the companies it rates across the world do not disclose gender pay gap data. European companies are the most likely to publish data, in particular UK firms given mandatory requirements for large businesses since 2018. Fitch said the low levels of gender pay gap data exists despite growing investor engagement with the issue and more countries legislating to address pay gaps. Fitch says 38 OECD countries had some form of reporting requirements in place as of June 2023. Many European countries have corporate governance codes encouraging or mandating greater gender diversity at board level. The EU’s proposed Corporate Sustainability Reporting Directive including requirements for companies to disclose gender pay gap data, board representation and diversity policies. China has mandated gender diversity for new company listings on the Hong Kong Stock Exchange. “The Middle East, Latin America and parts of Asia fall behind in board diversity due to cultural and regulatory reasons,” Fitch says. It adds: “EMEA issuers are more than three times as likely to establish any gender diversity targets (for whole workforce, senior management, executive teams or boards) than their US counterparts.” Corporates in Georgia, India and Mauritius score at the bottom for gender diversity in the general workforce and at senior level, Fitch says. Its finds that companies with high levels of gender diversity tend to have better ESG ratings overall. Banks and financial institutions lead gender diversity, with sectors such as energy, automotive and transportation lagging behind, Fitch says, while female board representation is also higher in insurance, healthcare and education. “The data indicate that a company’s enthusiasm for diversity could have positive effects in other areas, with benefits extending to environmental and governance practices. This trend may be because robust diversity initiatives are often components of a broader, strategic commitment to sustainability,” Fitch says.

European companies lead on board-level gender diversity

Fitch says firms with high levels of gender diversity tend to have better ESG ratings

Want to read this article?

Read Next

Ferma members told AI will bring risk and reward for corporate insurance buyers

Warmer climate spreading risk of malaria and dengue to new regions

UN launches new net-zero insurance forum to replace NZIA

Pen extends fleet capacity deal with Zurich in Republic of Ireland

Mapfre Global Risks boosts profit by 58% despite reduced premiums

Ferma members told AI will bring risk and reward for corporate insurance buyers

Warmer climate spreading risk of malaria and dengue to new regions

UN launches new net-zero insurance forum to replace NZIA

Pen extends fleet capacity deal with Zurich in Republic of Ireland

Mapfre Global Risks boosts profit by 58% despite reduced premiums

Want to read this article?

Read Next

Ferma members told AI will bring risk and reward for corporate insurance buyers

Warmer climate spreading risk of malaria and dengue to new regions

UN launches new net-zero insurance forum to replace NZIA

Pen extends fleet capacity deal with Zurich in Republic of Ireland

Mapfre Global Risks boosts profit by 58% despite reduced premiums

Related Articles