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Diversity in Focus
Advancing diversity in investment-decision making
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Diversity has been linked to innovation, financial performance, loyalty and retention, according to a growing body of research.
A 2018 McKinsey study found that ethnic and cultural diversity at the executive and board level correlated with stronger profitability. A 2016 MSCI study, analyzing US companies over a five-year period, found that having at least three women on the board represented a “tipping point” of influence that was reflected in financial performance.
Companies may choose to publicly report on diversity data across a range of demographic categories including age, gender, race, ethnicity, sexual orientation or identity (LGBTQ status), disability, or some combination thereof. Companies may also disclose diversity data by different employee groups, function, seniority, or employment status.
As of February 2021, 76% of the 2,337 constituents of the MSCI USA Investable Market Index (IMI) disclosed workforce breakdown by gender, and 26% disclosed by race or ethnicity.
We encourage greater levels of company disclosure as a starting point on the path to greater board and workforce diversity, equity and inclusion, and ultimately, long-term value creation.
Disclosure by Gender and Race/Ethnicity
This chart includes the 2,327 constituents of the MSCI USA IMI as of February 2021. Source: MSCI ESG Research LLC.
Racial and Ethnic Diversity
Over the past year we have seen the issue of racial justice come into sharp focus in the United States and around the world. As a result, we have seen growing interest from institutional investors in data on companies’ racial and ethnic diversity practices.
MSCI ESG Research offers metrics on Racial and Ethnic Diversity for US companies in these three categories:
- Board and Workforce Quantitative Data
- Diversity Policies, and
- Qualitative Metrics
For questions about this data, or interest in gaining access to the data, please get in touch.
Explore our Racial Diversity Insights
Nasdaq’s New Board Diversity Rules: What’s the Impact?
Nasdaq’s New Board Diversity Rules: What’s the Impact?
In the short term, Nasdaq’s forthcoming board diversity quotas will affect almost none of its listed companies, but they could help to reshape U.S. boards over the long term.
Race & Ethnicity Disclosure: US Companies’ Rocky Start
Race & Ethnicity Disclosure: US Companies’ Rocky Start
One-fourth of MSCI USA IMI constituents have disclosed employee breakdowns by race or ethnicity. Of these, there were at least 70 variations of workforce demographic categories.
Gender Diversity
Gender Diversity
We have reported annually on the state of women’s representation on corporate boards since 2009. Our research shows that it may take until 2029 for women to comprise 30% of corporate boards, and until 2045 to reach 50%.
Explore our Gender Diversity Insights
Women on Boards: 2021 Progress Report
Women on Boards: 2021 Progress Report
Since 2016, the proportion of boards with at least 30% female directors has increased from 10% to 42%.
Nasdaq’s New Board Diversity Rules
Nasdaq’s New Board Diversity Rules
The Nasdaq Inc. stock exchange’s new diversity rules will impose board diversity disclosure requirements on Nasdaq-listed companies.
Has DEI Worked for Women?
Has DEI Worked for Women?
MSCI ACWI Index constituents with comprehensive diversity, equity and inclusion (DEI) programs had, on average, better board-level gender diversity but fewer women in CEO or CFO roles or in their general workforces.
Women on Boards: The Hidden Environmental Connection?
Women on Boards: The Hidden Environmental Connection?
Our most recent study of gender diversity on boards found that progress in this area is slowing.
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