Skip to content

29 March, 2023

Subscribe Advertise About Us
  • My Account
  • Register
  • Log In
  • Log Out

Board Agenda

  • Governance
  • Strategy
  • Risk
  • Ethics
  • News
    • Categories

      • View All
      • Board Moves
    • net zero plans

      Investors seek commitment to net zero planning

      Climate change campaigning investors have written to 107 companies, asking for prompt proof of net...

    • Mars ESG News round-up: this week in governance

      Mars CEO defends ESG and purpose; US president vetoes anti-ESG bill; trust can negatively affect...

    • ChatGPT technology Could ChatGPT technology join the board?

      Although governance may stop artificial intelligence replacing anyone on the board today, AI may soon...

  • Insight
    • Categories

      • View all
      • Governance
      • Strategy
      • Risk
      • Ethics
      • Board Expertise
      • finance
      • Technology
    • non-compete clause

      When employees become the competition

      How might you be affected by a global move towards the banning of employment contract...

    • data decision

      How to boost decision making

      Innovative digital tools can help boards to deliver against strategic objectives, but it is the...

    • remote working

      Navigating the new world of work

      Firms need to focus on building an inclusive environment and a culture of trust to...

  • Comment
      • View all
    • uncertainty in 2023

      Being a CEO in 2023: how to navigate uncertainty

      Agility, planning in the shorter term and bravery will all stand chief executives in good...

    • A week of business moving to the centre of human rights

      A week of events signals the initiatives underway to have companies play a central role...

    • audit reform IIA Why we need audit reform right now

      There is an "urgent need" for reform to the audit landscape as well as internal...

  • Interviews
      • View All Interviews
      • Podcasts
      • Webinars
    • life sciences podcast Reform of NHS levy ‘harms UK competitiveness’

      Boards in the pharmaceutical and life sciences sector face increasingly difficult decisions, according to a...

    • Board priorities 2023 Board priorities 2023: tact, trust and transparency

      We asked key figures what would help boards this year. The answers ranged from 'smarter...

    • Group of investors/shareholders in glass building Climate issues likely to figure prominently at next year’s AGMs

      A recent webinar heard that say-on-climate voting is expected to rise, while ESG remains a...

  • Careers
      • View all
      • Selection
      • Board Moves
    • female ceo Less than a third of FTSE 100 executives are women

      In Europe as a whole, only 7.7% of top companies’ chief executives are female, gender...

    • board size Performance declines as boards grow in size

      Researchers found that investment dropped by 2-3 percentage points as companies passed from 12 to...

    • Silicon Valley governance Silicon Valley improves its governance

      Big technology companies are stealing a march over other top corporates when it comes to...

  • Resource Centre
      • White Paper Downloads
      • Book Reviews
      • Corporate & Advisory Services
    • Diligent report

      Forrester: The Total Economic Impact Of Diligent Board & Leadership Collaboration

      Diligent Board Leadership & Collaboration reduced the risk of confidential material loss, supported decision-making, and...

    • Gender diversity barometer

      Barometer of Gender Diversity in Governing Bodies in Europe

      The 2023 Barometer of Gender Diversity in Governing Bodies in Europe looks at the 16...

    • geopolitical risk airmic

      Navigating geopolitical risk

      Today, the future feels less secure, and optimism is more restrained. Taking decisions in an...

  • Events
  • Search by topic
    • Governance
    • Strategy
    • Risk
    • Ethics
    • Regulation
    • ESG
    • Investor Relations
    • Selection
    • Board Expertise
    • finance
    • Technology

‘Not enough being done’ to link diversity and climate goals

by Gavin Hinks on October 29, 2021

Report suggests many firms fail to draw a connection between tackling the climate crisis and gender diversity at the top table.

Businesswoman holding globe in arid landscape

Image: Ollyy/Shutterstock.com

The lack of women in leadership positions—including chief executives, finance directors and board chairs—is holding companies back from making better progress on climate action, according to a new report.

Coming just days before world leaders meet in Glasgow for the UN’s COP26 climate conference, the report suggests many companies fail to draw a connection between tackling the climate crisis and having an appropriate gender balance throughout their organisations but especially at the top table.

The report, from the 30% Club, a campaign body for improved gender representation in boardrooms, and the Oliver Wyman Forum, says that more than a fifth of companies have “pledged” to reach net zero emissions by 2050 but few “actively include or consider women in their climate action decisions and plans”.

Figures in the report say 75% of women consider environmental impact against 64% of men, while women are twice as likely as men to consider ESG in investment.

According to Ann Cairns, co-chair of the 30% Club, women are an “essential force” for finding climate solutions. “Business can benefit from highlighting the relevance of gender equality to climate outcomes and from amplifying women’s roles as leaders, low-carbon product influencers and climate-focused investors.”

Linking diversity and climate goals

According to Rupal Kantaria, an Oliver Wyman partner, recognising the potential influence of women in the battle against global warming would benefit business. “There is a growing awareness among business leaders that women have a greater potential to act as change makers but not enough has been done yet to link both diversity and climate goals together.”

The joint report calls on corporates to set more specific targets for gender representation for board committee leadership, spokespeople and for experts.

It also advises boards to implement governance measures to ensure senior executives understand the link between women and climate policy decisions, as well as integrate climate and gender policies in areas such as product development, hiring and spending.

The report says: “Many companies appear to be realising the contributions women can make to climate actions: Female representation in chief sustainability officer roles in the United States rose to 54% in 2021, from 28% in 2011.

“However, the underrepresentation of women in other leadership position—including most influential decision-making roles, such as CEO, CFO and board chair—is, we believe, constraining companies’ climate action.”

Top executive roles

Earlier this year research revealed that under pressure from investors, female boardroom representation in the US has improved, up from 13.2% in 2016 to 18.7% in 2019.

In its final report the Hampton-Alexander review celebrated success in moving women into UK boardrooms but also struck a note of disappointment. Targets had been reached for boardroom representation but the number of women in executive jobs still lagged.

Sir Philip Hampton, one of the joint founders of the review, said more women in executive roles was now required if their presence at the highest levels is to be maintained. “The progress has been strongest with non-executive positions on boards, but the coming years should see many more women taking top executive roles. That’s what is needed to sustain the change made,” he said.

Meanwhile, French academics at Université Paris-Dauphiné produced research showing that companies with women on their boards tend to perform better against ESG measures. Representation in France rose after the introduction of a quota law. “We find that after the introduction of the quota law, the E&S performance of French firms is enhanced,” the researchers concluded.

COP26 will doubtless offer fresh impetus to the effort against the climate crisis. For much of the world company disclosures are the main route to improved climate action. The 30% Club and Oliver Wyman report suggests it may well be a personnel issue too.

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • Mail

Related Posts

  • Greater board diversity drives company climate action
    December 14, 2021
    Board members discussing ESG

    Research reveals that greater gender and age diversity on boards improves company engagement across all critical climate action indicators.

  • FRC says climate disclosures are 'failing to meet investor expectations'
    September 11, 2021
    Climate disclosures warning sign

    Review by the UK regulator finds there is "little evidence" that business models and strategy are being influenced by climate considerations.

  • ClientEarth’s climate case against Shell 'likely to fail'
    April 11, 2022
    Shell logo outside a petrol station

    Corporate governance expert says ClientEarth will struggle to prove Shell’s directors did not consider the “wider interests” of the company.

  • Climate disclosures 'unlikely to drive a green transition'
    October 2, 2021
    Melting ice cap

    Academics say climate reporting is likely to be less effective than direct regulatory interventions such as taxation or emissions trading.

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

30% Club, Board composition, climate change, climate risk, COP26, diversity & inclusion, gender diversity, Oliver Wyman

Search


Sign up to our Newsletter

Receive independent news, thoughtful journalism & expert insights about leadership, corporate governance & key boardroom issues straight to your inbox every week.

SIGN UP

Follow Us

 

 

 

 

Most Popular

  • Could ChatGPT technology join the board?
  • Larry Fink puts focus on finance and inflation
  • Call for FTSE 100 companies to give guidance on ethics
  • News round-up: this week in governance
  • ESG resilience requires leaders to manage without certainty

Featured Partner Profile

Diligent

Diligent

Diligent Corporation, which was founded in 2001, is headquartered in New York, NY with a European HQ in London. Diligent’s modern governance platform empowers leaders and teams at every level of the organisation to digitally transform and create ...

Featured Partner Resources

2022 AGM Season Forecast: An Eye on The Horizon

To help prepare for AGMs in 2022, Equiniti (EQ) hi...

Stakeholder Engagement: A Roadmap for UK Plc Boards

This guide aims to provide directors and their col...

Digital Boards: How Technology Adoption is Driving Culture Change and Resiliency

Digital tools proved their worth to boards during ...
Leadership in AI report

Leadership in AI

This report from Board Agenda and Mazars, in assoc...
Creativity in a Crisis: a Boardroom Map for Innovation

Creativity in a Crisis: a Boardroom Map for Innovation

In the uncertain times at the height of any crisis...
Board Directors Guide to D&O Liability Insurance - November 2020 - AIG & Board Agenda

Board Directors' Guide to D&O Liability Insurance

Directors face liability over a range of new threa...
Leadership-in-Risk-Management-Board-Report

Leadership in Risk Management: Board Report

Board Agenda, in association with Mazars and INSEA...
Director's Guide to Internal Investigations

A Director's Guide to Conducting Internal Investigations

An internal investigation must be handled meticulo...

 


 

ADVERTISE – FREE CORPORATE LISTING

FREE - Add your company profile to our Corporate & Advisory Directory.
ADD

ADVERTISE – PROMOTE YOUR REPORTS & WHITEPAPERS

FREE - Add your company profile to our Corporate & Advisory Directory.
Add Resource

Register Free

Register to receive free article views, selected resource downloads, and all the latest news alerts straight to your inbox. Register


  • Editors & Contributors
  • Editorial Advisory Board
  • Corporate & Advisory Services
  • Media Marketing Solutions
  • Contact Us
  • Careers
  • Board Director Network
  • Terms & Conditions
  • Privacy Policy
  • Cookies
  • Sitemap
|