Equileap and Solactive have collaborated to launch the Solactive Equileap Emerging Markets Gender Equality Index to set a standard for inclusive investing.
The index is comprised of over 600 companies and uses a methodology to give equal representation across sectors and countries that are committed to gender equality. The index has an annual outperformance of 25% over its benchmark, the Solactive GBS Emerging Markets Large & Mid Cap Index, according to the groups.
Alongside the launch, Equileap has published its Gender Equality Report & Ranking for emerging markets. The report provides insights into gender pay gap and sexual harassment disparities globally. The research looked at nearly 1,5000 companies across 24 emerging markers in the Americas, EMEA (Europe, Middle East and Africa), and APAC (Asia-Pacific), representing 43 million employees globally.
It found that whilst emerging markets such as India, Taiwan, and South Korea are making significant strides in narrowing the gender pay gap and addressing sexual harassment, the US and UK are making minimal progress. For example, 88% of South Korean companies publish gender pay information without any legal obligation to do so, compared to 13% of US companies.
Further, 100% of Indian companies publicly disclose its anti-sexual harassment policies, with Taiwan (96%) and South Korea (87%) following closely. Shockingly, only 45% of UK companies publish these policies, lower than the overall emerging markets average which sits at 54%.
However, the research found the UK and US do have an overall higher gender balance, compared to the representation of women on executive teams in South Korea which averages at just 6%.
Diana van Maasdijk, chief executive of Equileap, said: “The release of our inaugural report on gender equality in emerging markets confirms our ongoing commitment to delivering essential social data to institutional investors. Our findings illuminate an important global market, teeming with financial opportunities and innovation, where companies are demonstrating efforts to advance gender equality.
“Now that the data is available, investors can play a crucial role in promoting gender equality in these vibrant markets. This not only aligns with our dedication to social responsibility but also solidifies our belief in the undeniable link between diversity, equity, and sustainable economic prosperity.”
