Female leaders; a better investment.
When talking about sustainable investing, people usually think about things like climate change and recycling. They don’t often mention gender equality. However for many, workplace gender inequality is a major issue which should be simple to fix, but frustratingly still exists today.
One of the ways it can be fixed is to invest in companies which are finding a new balance through diverse workforces and higher numbers of female executives.
Doing so might also turn out to be a better investment. According to Sustainalytics, one of the world’s largest independent ESG data providers, ‘gender diverse’ companies can produce 3% higher returns per annum than their less diverse counterparts.
One reason, according to Stoxx, is that the “percentage of women on the board has a risk reducing influence on stock prices”.
For companies, money and reputation talks. So actively showing your support for companies that align with what’s important to you and disinvesting from those that don’t, can help shape the world you want to live in.
With the right information, you can make investment decisions based on issues that are important to you and it doesn’t mean you have to sacrifice returns.
Image: Brooke Larke