ESG Thema #17 - Investing in gender equality: Momentum is growing

Discover more on gender diversity and how to take advantage of the growing momentum on gender-smart investing.

• Despite the growing economic and financial role played by women around the world, women are still heavily under-represented in positions of responsibility and on corporate governance bodies in 2024. In France, while representing 50% of the working population, women represent only 12% of CEOs across MSCI ACWI Index constituents. This figure is higher for a number of countries, including New Zealand (42.9%), Thailand (20.7%) and Norway (18.2%), yet lower in the US (8%) and Canada (3.5%), but the global average still remains below 7%.
   
• Gender diversity within companies is not just a matter of intrinsic value or a moral imperative, it is also a key determinant of economic growth: greater gender balance is associated with higher productivity, with an increase in competitiveness and with overall financial stability.
   
• Investors and asset managers have a key role to play to promote greater gender equality and diversity, and have several levers at their disposal to do so.
   
• First, financial instruments focusing on gender equality objectives are gaining traction: the gender-lens investing market is a rapidly growing segment of the sustainability investing universe and is attracting increasing investor attention. In particular, gender-focused sustainable bonds are useful instruments to finance projects to support gender equity, encompassing issues related to female empowerment advancement and equality.
   
• Engagement and voting powers are also important tools at the disposal of investors and asset managers, enabling them to better understand the challenges faced by companies and identify best practices to promote greater gender equality. For several years now, Amundi has been engaging with companies on the subjects of gender equality and the benefits of diversity, particularly within governance bodies. By 2023, Amundi had engaged with 482 companies on this subject.
   
• Despite the recent Diversity, Equity & Inclusion (DEI) backlash, especially in the United States, we believe that closing the gender gap is more important than ever: beyond the moral imperative it represents, it is also a key determinant of future economic prosperity.