Celebrating diversity

Challenge

Capitalizing on the benefits of female leadership is increasingly recognized as a winning strategy in many spheres. We would like to highlight the ongoing efforts made by several companies to promote diversity and female leadership, through both their governance and workplace policies.

Did you know that companies where women make up at least 15% of senior management have higher profitability than those where female representation is 10% or lessfootnote1?

Companies that advocate for better representation of women in leadership positions generally havefootnote2:

  • Better financial results
  • A more innovative approach
  • Better decision making

Yet, women represent only 21.5% of board seats among TSX-listed companies reporting the number of women on their boardsfootnote3.

What can we do about this?

One thing is to walk the talk! For example, the portfolio managers of Desjardins Sustainable Funds take female representation into account when constructing the funds, choosing companies that promote diverse and inclusive leadership. By doing this, they encourage policies that foster diversity on boards of directors and in senior management.

The portfolio manager of Desjardins Sustainable Diversity Fund has even set thresholds. The Fund targets companies that are financially sound and meet 1 or more of the following criteria:

  • Have women comprising more than 30% of their board of directors
  • Have women comprising more than 15% of their executive committee
  • Apply internal practices and policies fostering diversity and inclusion
  • Actively strive to improve their diversity and inclusion practices

Desjardins Sustainable Diversity Fund is 1 year old!

Some of the companies the Fund invests in

Learn more about the companies that make up our Sustainable Responsible Investment Funds and Portfolios

This information should not be construed as a recommendation to buy or sell the securities, products or services referred to or as the sole basis for an investment decision.

  1. Credit Suisse Research Institute. The CS Gender 3000: The Reward for Change. - External link. This link will open in a new window. (September 2016): 25. [cited February 24, 2021].
    *Based on data collected from 2014 to 2016.
  2. Thwing Eastman, Meggin, et al. The Tipping Point: Women on Boards and Financial Performance : Woman on Boards Report 2016. - External link. This link will open in a new window. MSCI, Research Insights (December 2016): 15. [cited February 24, 2021].
  3. MacDougall, Andrew, et al. 2020 Diversity Disclosure Practices: Diversity and leadership at Canadian public companies. - External link. This link will open in a new window.OSLER, January 7, 2021. [cited February 24, 2021].
  4. This company is in the fund’s portfolio as at December 31, 2022.

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