The focus on meeting the UN SDGs is growing but the lack of progress towards closing the gender gap remains. There is a lot more businesses can do to promote gender equality and Lorraine Spradley Wilson (pictured), Chief Sustainability Officer, Novata, gives practical examples…
PARTNER CONTENT
By Lorraine Spradley Wilson
Chief Sustainability Officer, Novata
The focus on meeting the UN SDGs is growing but the lack of progress towards closing the gender gap remains. There is a lot more businesses can do to promote gender equality.
Launched in 2015, the United Nations Sustainable Development Goals (SDGs) are frequently referenced by investors as part of a call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity. Although the UN leans heavily on governments to make progress on the 2030 goals, business can and must play a key role. Recently, COVID-19 and the war in Ukraine have diverted the attention of global governments from tracking and advancing the SDGs.
As we reach the midway point of the timeframe to realize the goals, the opportunity for businesses to make progress on the SDGs has become more of a focus. According to a study by the standard-setting organization GRI, four out of five companies mention a commitment to the SDGs in their sustainability reports. Yet, fewer than half of the companies involved in the study have set measurable targets for how their actions contribute toward fulfilling the SDGs. As we approach the key UN midpoint summit in September, it’s critical to highlight areas where businesses can do more.
One of the areas with the most alarming lack of progress versus the SDGs is the gender gap, as captured in SDG 5 for gender equality. According to the UN, “[a]t the current rate of progress, it is estimated that it will take up to 286 years to close gaps in legal protection and remove discriminatory laws, [and] 140 years for women to be represented equally in positions of power and leadership in the workplace.”
Data from Novata’s platform of over 2,000 privately held companies across 50 countries helps provide insights on the state of gender equality in the workplace. On the positive side of the ledger, our data shows that the “number of women on the board” is the top reported metric across all governance-related metrics. While interest in this metric is high, the actual performance shows a need for improvement. Data in Novata’s platform found that, on average, only one in six board members are women and one in six C-suite executives are women. Globally, women make up 28% of public company boards and 19% of the C-suite. This puts performance at privately held companies behind that of publicly traded companies.
Although estimates vary, globally, there are over 300 million private companies, relative to around 50,000 public ones. Private market industry initiatives such as the ILPA Diversity in Action Initiative and Women’s Awareness Initiative are focused on increasing the representation of women in positions of power and leadership in the workplace. End investors, current and prospective employees, and other stakeholders are also increasingly tracking this information.
The data coming out of the private markets is mixed. On one hand, gender representation on boards and in the C-suite is lagging. On the other hand, there is a bright spot, albeit a small one, with regard to the gender pay gap. Novata’s research shows that privately held companies across the U.S. paid women 86% of what men were paid. In comparison, this figure stands at 82% more broadly in the U.S.
What specific actions can companies implement to improve gender equity? It starts with policies. According to the UN, “45% of countries did not mandate equal remuneration for work of equal value.” This isn’t surprising, given what we’ve seen in our research. While 99% of firms in the Novata database report having an anti-harassment policy, equitable pay is one of the least popular policies on our platform, with only 45% having a policy in place. In contrast, 88% of firms reported having a cybersecurity policy and 89% had a data privacy policy. Developing policies that promote gender equity, such as an equitable pay policy, is a critical step for businesses to outline measurable goals and ensure accountability toward progress.
Prioritising gender equity can improve profitability, improve employee retention, and attract talent. This is important not only for future hiring, but also for overall economic prosperity. Gender equity makes communities safer and healthier, and we all have a role to play in advancing progress – that can’t wait another 140 years.
Lorraine Spradley Wilson, Chief Sustainability Officer, Novata – Prior to Novata, Lorraine was managing director and head of investor solutions at JUST Capital. Previously, Lorraine held roles in investment management in New York at Bank of America Merrill, Third Avenue Management, and Goldman Sachs. Lorraine has served on the board of several community organizations and is an advisor to the NYU Center for Sustainable Business. She is based in Washington, D.C.
