Investors push for 40% women in ASX 200 exec roles

Shareholders holding billions of dollars in ASX 200 companies want change for the betterment of company performance and social equality.

| More on:
Back os ASX 200 woman executive looking out high rise office window

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Nine major investors have signed a plan to push for 40% female representation in S&P/ASX 200 Index (ASX: XJO) executive roles by 2030.

The $52 billion superannuation fund HESTA on Thursday launched the 40:40 Vision campaign, with Aberdeen Standard Investments, BlackRock Australia, Ellerston Capital, Fidelity International, First Sentier Investors, IFM Investors, Pendal Group and WaveStone Capital on board as founding signatories.

These investors will now target ASX 200 companies to get them to sign up to the pledge as well.

Currently only 30 ASX 200 companies have at least 40% women in executive positions.

The initiative wants to see policies and targets that will eventuate in 40% women, 40% men and 20% "any gender" in C-suite roles by the year 2030.

Companies that sign on will need to be transparent on their progress and set interim targets for 2023 and 2027.

Not good enough, say investors

HESTA Chief Executive, Debby Blakey, said progress was currently too slow and was proving to be a risk to shareholders.

"At this rate it will be another 80 years before we see equal representation of men and women at CEO level – and similarly in executive leadership – unless action is taken now," she said.

"We see lack of gender diversity in leadership as a financial risk. Companies that fail to consider 50% of the population for leadership positions risk missing out on the best people and the performance of the organisation will eventually suffer."

Blakey, who is also chair of the 40:40 steering group, said the initiative gives companies the flexibility to set their own path to the 40% goal.

"We want to see real, genuine change – not just additional layers of needless reporting and governance that invariably becomes a tick-the-box exercise," she said.

"As a significant investor, we cannot simply diversify away from risks stemming from social inequality."

HESTA, as a super fund for the health and community sector workers, has 80% female membership.

There was significant evidence that gender balance in executive positions led to better decision making and stronger company performance.

"As a long-term investor, we see gender diversity as an accurate indicator of a well-run company, with strong, inclusive decision making that's more likely to deliver long-term value to shareholders," she said.

"We also know that women in senior leadership are important champions for cultural change. More inclusive workplaces mean more career opportunities for women that can, over the long-term, improve their retirement outcomes."

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's when Westpac says the RBA will now cut interest rates

Will borrowers need to wait until the middle of next year for relief? Let's find out.

Read more »

Boys making faces and flexing.
Opinions

3 ASX 300 shares to buy and hold for the long run

I believe these stocks have loads of growth potential.

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

Two people tired and resting after sports race.
Broker Notes

Fundie rates 2 ASX 200 stocks in short-term pain but with long-term gain potential

Blackwattle Investment Partners sees these 2 ASX 200 stocks as worthy of a buy and hold strategy.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »