New ISS benchmarks increase the pressure for diverse boards
The US ratings agency recommends voting against directors of firms without racially or ethnically diverse board members from 2022. But details are lacking.
Image: Lightspring/Shutterstock
Despite a lack of clear guidelines, Russell 3000 and S&P 1500 boards will need to demonstrate diversity or risk anti-management proxy votes.
In the wake of a turbulent year where racial inequalities in America rocked the nation with ripple effects from Main Street to Wall Street, ISS is making history by becoming the first ESG rating agency to take a hard stance to increase ethnic and racial diversity in publicly traded American companies.
The impact is clear: corporations can no longer merely talk the talk when it comes to diversity and inclusion. Indeed, they have a little more than a year to get their boards looking a lot more li
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda
Related Stories
-
Almost half of top investors have gone public with their ESG strategy
A total of 48% of the top 50 global investors have issued position papers on their ESG strategy, although a gap remains between commitments and reality.
-
Evidence builds for introduction of new audit committee standards
Financial Reporting Council says new report "lends weight to proposals for reforms in the audit sector", including new standards for committees.
-
Is human rights risk monitoring a weak link in your supply chain?
Current risk monitoring systems may not protect workers or provide an accurate assessment of risks. Here are the questions companies should ask themselves.
