Industry insider offers some tips to uncover what progress companies are making
While gender equity and diversity are some of this epoch’s hottest issues, clients who want to use them as an environmental, social, and governance (ESG) filter are going to find it much more difficult than screening portfolios for climate change.
It’s not impossible, but it takes some digging, Martha Breithaupt, Partner and National Leader of Research and Development and Government Incentives at Grant Thornton LLP in Toronto told Wealth Professional.
“There is no required framework on gender reporting at the board level or at the executive level here in Canada. There are European countries that have mandated requirements for board representation at a gender level, but not here,” she said. “So, you have to do your own research.”
Breithaupt said there are some great ways to do your own screening.
The first is to research any companies that your client is interested in investing in and determine if their boards represent their vision of diversity and equity inclusion, and how it relates to women.
You can also look at companies that are funded federally.
“There are so many programs that support diversity for women and fund female entrepreneurship, as well as female and diverse hires,” she said, so advisors can check government announcements about what organizations they’re funding that are specially socially responsible for gender.
Breithaupt suggested checking the federal government’s Women’s Entrepreneurship Strategy, which is a $6 billion, five-year grant and loan investment to increase women-owned business’ access to the financing, talent, and expertise they need to start, scale up, and access new markets. You can also check its Venture Capital Catalyst Initiative, which fosters investment for underrepresented entrepreneurs, especially women.
You can also check companies’ annual reports and websites to see what female representation they have in their leadership, and what they are doing for hybrid work, which accommodates women.
“Seek out those companies that are offering flexibility,” she said, noting that’s more common now, especially with the current labour shortage. “I think having a hybrid working model is going to be a requirement to keep female talent in the market at this point.”
Doing this kind of checking can open up the conversation about removing barriers to move forward.
Breithaupt also noted that, while there is currently no Canadian regulatory framework that requires ESG reporting on gender parity at either a board or executive level in Canada, but there are some discussions about having such a registry for corporate public reporting in Canada.
“Maybe, in another year,” she said. “we’ll have a more formal framework in place.”
In the meantime, Breithaupt said you can also find investments for your clients in countries that have regulatory frameworks in place – Norway, Portugal, Belgium, Italy, Germany, France, Austria, Spain, Iceland, and the Netherlands. You can also have them invest in companies that support the female community through products and services aimed at improving girls’ and women’s lives.
