Investing in the Future: The Case for Increasing Diversity in Finance
As companies are setting their action plans to respond to social injustice around the world, Accenture's Managing Director - CEO and Enterprise Strategy adds to the discussion by sharing some thoughts on how the finance function has a particularly strong mandate to be more inclusive: not only is it the right thing to do–it’s vital to future success.
Investors Are Committing to Action on Diversity. Now What?
By Marcella Pinilla and Nandini Hampole: Amid a wave of societal commitments to action on diversity, equity, and inclusion (DEI) and racial justice, investors are stepping up commitments and vowing to intensify engagement with companies on DEI. Despite some progress made to reflect a country’s demographics in the corporate office, in the U.S. and around the world, we are now amid a racial reckoning that calls on all of us to reflect on the real progress made and what needs to advance for real change. So, what does that mean for companies, and how should they prepare to meet the moment? BSR's report seeks to answer this question.
Inclusive Impact: A Comprehensive Review of Diversity in the Social Investment Sector
From The Diversity Forum: In 2018 Inclusive Boards was commissioned by the Diversity Forum, funded by the Connect Fund to extend and contribute to existing research on diversity in the social investment sector. The primary aim of this research was to use different data collection methods to better understand why there are ceilings for women in management positions and ethnic minorities in back office functions. They also examined other diversity strands whilst taking into account intersectionality factors.
Diversity Beyond Gender: The State of the Nation for Diverse Entrepreneurs
By Erika Brodnock from Extended Ventures: This vital piece of research, which was carried out by Extend Ventures with the support of Impact X Capital Partners and Tech Nation, looks at how the colour of a founder’s skin can adversely affect their access to capital in Britain.
Diversity As $uperpower: The (Well-Known) Data Against Homogeneous Teams In Venture Capital
The data are clear: As with public companies, startup founder and investing teams that are diverse—specifically with more than one gender and/or one race or ethnicity represented—are more innovative and make more money. In fact, venture capital investing teams limited to any one gender and/or any one race damage innovation and risk limiting financial outcomes. This article summarises the steady stream of evidence published since 2013 indicates that when startup teams and venture investing teams embrace differences in gender, race, ethnicity, educational background, and/or professional experience, these heterogeneous teams outperform homogeneous teams.
The Economic Benefits of Improving Social Inclusion
The Special Broadcasting Service (SBS) commissioned Deloitte Access Economics to quantify the economic dividend from raising the level of social inclusion in Australia, with a focus on cultural diversity, in order to help shape its future policies and strategies for delivering on its Charter. The quantitative analysis in this report largely focuses on the benefits of social inclusion for culturally and linguistically diverse communities, specifically migrant communities, but this report recognises that there are many other groups that contribute to diversity and for whom improving social inclusion is likely to result in additional economic benefits.
The Investment Case for Board Diversity: A Review of the Academic and Practitioner Research on the Value of Gender and Racial/Ethnic Board Diversity for Investors
This paper from the Office of the Illinios State Treasurer seeks to examine the wealth of literature on the subject of whether and to what extent gender and racial/ethnic diversity affect the functioning of corporate boards and the performance of the companies they oversee, to provide further insight and render a judgment on the investment case for gender and racial/ethnic diversity on corporate boards. In summary, this paper concludes that the gender and racial/ethnic composition of corporate boards does indeed have a material and relevant impact on company performance and investors.
DEI Data Group: DEI Data Standard
In August 2020, the DEI Data Group commissioned a framework to monitor equity considerations in grantmaking, with a view to including the data in published grants information. This framework is not a judgement of organisations, it simply spells out the different categories that enable funders to collect data in a systematic manner to understand whether the reach of the funding and their funding practices are equitable. It will be used to inform funding strategies and specific funding strands/programmes, not individual funding decisions - except where it is explicitly a part of the fund criteria. The primary use will be for funders to monitor their grant programmes, but it is also anticipated that there will be wider use of a shared framework for sector analysis.
Social Equity Investing: Righting Institutional Wrongs
From Cambridge Associates: This paper reviews the current state of social equity in the United States, highlight eight core social equity issue areas, and discuss the lessons they've learned in constructing portfolios with these investments. They define social equity investing as investments to promote equal opportunity and access for all, regardless of background, but understand that many investors have different definitions. While investors need to be mindful of risks, the authors believe that investments can be made to promote a social equity impact agenda across the portfolio.
Harvard Law School Forum on Corporate Governance: Racial Diversity and Investment
Whilst gender diversity has been a growing priority for several years, investors have not approached racial diversity with similar enthusiasm and urgency. The topic of racial diversity in the investment industry was recently raised in an open letter in the UK from a group called Black Women in Asset Management, challenging the industry to move beyond statements on solidarity and anti-racism. The extensive Black Lives Matter protests, catalysed by the killing of George Floyd, have highlighted our interdependence in the midst of a global health crisis and the urgent need for action. It is time to ask what institutional investors can do to address the increasingly evident racial iniquities and their inconsistency with commitments to responsibility in business and investment.
Racial Equity Action Plans: A How-to Manual
Racial Equity Plans are both a process and a product. A successful process will build staff capacity which can be valuable during implementation. A process can also serve to familiarize more staff with the jurisdiction’s racial equity vision and its theory of change. This manual from GARE provides guidance for local governments to develop their own Racial Equity Action Plans after a period of research and information gathering. This manual also provides guidance and tools to conduct this research.
Racial Equity: Foundational Concepts
If you're early in your journey of exploring the links between racial equity and impact investing, a useful place to start is by understanding core concepts behind racial equity and how it differs from concepts such as diversity and inclusion. To help you get started, Mission Investors Exchange has compiled a brief list of frequently used terms, synthesized from the resources of leading educators.
Racial Equity Tools Glossary
Words and their multiple uses reflect the tremendous diversity that characterizes our society. Indeed, universally agreed upon language on issues relating to racism is nonexistent. Even the most frequently used words in any discussion on race can easily cause confusion, which leads to controversy and hostility. It is essential to achieve some degree of shared understanding, particularly when using the most common terms. In this way, the quality of dialogue and discourse on race can be enhanced.
Ethnic Origin and Disability Data Collection in Europe: Measuring Inequality – Combating Discrimination
From The Open Society Foundation: This report seeks to bridge the gap between theory and practice in relation to the collection of disability and ethnic origin data in the EU. The report notes that there is a widely held belief that the law prohibits any collection of sensitive data pertaining to disability and ethnic origin; however, equality data can be collected in compliance with the exemptions enumerated in Article 8 of Directive 95/46/EC.
Are you even trying to stop racism if you don’t collect data on race?
Most of the world’s wealthiest countries don’t collect any data on the racial or ethnic identity of their people. In many cases, it’s illegal. France doesn’t keep official statistics of how many Black residents it has, for example. Neither does Germany. Twenty of the 38 OECD countries collect no racial or ethnic identity data. These include some of the world’s wealthiest nations, like Japan, Germany, France, and Italy.
"France and Germany urged to rethink reluctance to gather ethnicity data"
Article from The Guardian reporting on how the racial discrimination debate had lead some leaders to push for updated surveys in France and Germany to help tackle injustices.
Statistics Canada Definition of "Population group of person"
From Statistics Canada: A definition of "Population group of person." "Population groups" are the groups used on questionnaires which collect data on the visible minority population for Employment Equity purposes. The Employment Equity Act defines visible minorities as "persons, other than Aboriginal peoples, who are non-Caucasian in race or non-white in colour".
Discussion Document for a Pan-Canadian Strategy to Advance Gender Equality
The Discussion Document for a Pan-Canadian Strategy to Advance Gender Equality of the Gender Equality Network of Canada is a culmination of the experiences, stories, expertise, and aspirations of over 150 leaders from across what is commonly known as Canada, nominated by local, federally funded, gender equality projects. The Discussion Document was developed out of three years of dialogue, learning, and knowledge sharing of the Gender Equality Network of Canada and is their collective response to a pandemic of gender-based violence, inequity, and the perpetually operationalized patriarchy which informs, directs, and administers our lives as women and people of marginalized genders.
Canadian Task Force on Women in the Economy
The COVID-19 pandemic has had an unequal impact on Canadians, particularly women, and the Government of Canada recognizes that a robust and inclusive recovery is necessarily a feminist recovery as well. The Government of Canada has created a Task Force on Women in the Economy to advance gender equity and address systemic barriers and inequities faced by women. The Task Force will harness the best ideas from a diverse group of experts to advise the government on a feminist, intersectional action plan that addresses issues of gender equality in the wake of the pandemic. Their expertise from the worlds of business, health, not-for-profit, child care, labour, academia, and advocacy will inform the government's plan to create jobs and growth. The Task Force will advise the Deputy Prime Minister and Minister of Finance and the Associate Minister of Finance on policies and measures to support women's employment.