Some gender-based strategies only review basic female representation data in senior leadership. Gender data tends to be unreliable, incomplete and backward-looking, posing a challenge to this quantitative approach.
Addressing this challenge requires not only verifying the data but actively engaging with companies to uncover those that truly value diversity. While some companies may appear to meet top-level quantitative thresholds, a true picture of an organisation’s diversity strategy requires much deeper due diligence, researching their full pipeline of female talent, not just in senior leadership.
This means assessing their diversity policies, the level of management and board accountability, pay equity and company culture. A truly rigorous gender-investing approach will look for companies that amplify their impact outside their own organisations through their products and services, supply chains and the communities they serve. Where possible, strategies should assess diversity beyond gender.
Read the full article in the March issue of ESG Clarity‘s digital magazine.
