This article was written by Patricia Torres, Global Head of Sustainable Finance Solutions at Bloomberg.
The global transition to a virtual working world, and the emerging hybrid ecosystems that will follow, have brought corporate culture into the spotlight. It has become more clear than ever that fostering an inclusive environment, in conjunction with support for work-life balance, can help companies enable long-term success in retaining a talented workforce and gain a competitive advantage.
Bloomberg has announced the opening of its 2022 Gender-Equality Index (GEI) Reporting Framework for participants, which brings transparency to gender-related practices and policies at public companies, increasing the breadth of environmental, social, governance (ESG) data available to investors. The GEI framework allows companies to see where they currently stand among their peers, as well as set targets to continue growing and making strides towards equality.
The GEI continues to grow each year as companies recognize the value of an inclusive environment – and investors are taking notice. According to research from Bloomberg Intelligence, screening for metrics such as the inclusion of women on boards translates into less volatility across most regions, suggesting the strategy may reduce risk and offer downside protection.
Stephen Adams, director in the Gartner Finance practice recently said, “Approximately one in 10 investors find the ESG information they are looking for in corporate disclosures. There is an enormous opportunity here for most companies to stand out better to investors simply by providing the information they are looking for.”
Not only are more companies disclosing data than ever before, but the quality of disclosure continues to improve year over year. In 2021, we saw record numbers of companies participate, with an average 94% disclosure score. We applaud the companies that are committed to advancing their efforts to support gender equality through policy development, representation and transparency in order to collectively drive real change.
For information, visit www.bloomberg.com/gei.