The ACSI has launched a formal voting policy that encourages ASX300 companies to achieve at least 30% female representation.
👉 Background: The Australian Council of Superannuation Investors, or ACSI, is a group created to represent super funds on specific environmental, social, and governance matters. After a few years of pushing, the ACSI has had enough of companies dragging their feet on gender diversity.
👉 What happened: Now, the ACSI has launched a formal voting policy which encourages ASX300 companies to achieve at least 30% female representation. But, currently 97/300 are falling short of that 30% target, including Harvey Norman and JB Hi-Fi.
👉 What else: The ACSI is considering a vote against male directors who are up for re-election in these 97 companies. And with ACSI managing over $1 trillion of retirement savings, they carry a LOT of sway..
💡Diversity in the corporate world isn't just a buzzword; it has become a business imperative. A report by McKinsey in 2020 found that leadership teams with high levels of gender diversity were 25% more likely to have above-average profitability.
💡Diverse boards are often more effective at decision-making and can lead to better financial performance. On top of that, they can reflect a company's customer base and respond to customer needs and trends.
💡With ACSI's push, the pursuit of gender diversity isn't just about fairness and representation... It's also about improving business outcomes.
Sign up for Flux and join 100,000 members of the Flux family
