Equileap, a data provider dedicated to advancing gender equality and diversity and inclusion in the corporate world, unveiled its inaugural Gender Equality Report and Ranking for emerging markets, alongside the launch of the Solactive Equileap Emerging Markets Gender Equality Index. Setting a new benchmark for inclusive investing, this index represents a significant milestone in Equileap’s mission to foster gender equality globally.
Equileap’s report shows that, on average, companies in emerging markets such as India, Taiwan, and South Korea outshine counterparts in the US in their efforts to narrow the gender pay gap and in the UK for combating sexual harassment in the workplace.
This report marks a significant expansion of Equileap’s research scope, encompassing nearly 1,500 companies across 24 emerging markets in the Americas, EMEA (Europe, Middle East and Africa), and APAC (Asia-Pacific), and representing 43 million employees around the globe.
Gender pay gap: the U.S. falls short
Companies in Taiwan, India, and South Korea, are setting the pace on gender pay gap transparency, leaving the U.S. trailing behind.
- 88% of South Korean companies publish gender pay information without any legal obligation to do so. In the U.S., 13% of companies publish their gender pay gap, while in the UK, 86% of companies disclose this information largely due to statutory requirements.
- Taiwan, India, and Turkey, among the biggest markets, all surpass the U.S. (at 13%) in disclosing gender pay gap data, with rates of 76%, 65%, and 20% respectively. ● A total of 14 companies in emerging markets have closed their gender pay gap, compared to 6 companies in the US.
Combating sexual harassment at the workplace: taking a public stand Companies in India, Taiwan, and South Korea showcase notably higher rates of publicly disclosing anti-sexual harassment policies compared to those in the U.S. and the UK.
- While 100% of Indian companies have these policies, Taiwan and South Korea follow closely, with rates of 96% and 87%, respectively.
- In the US, 69% of companies take a stand against workplace harassment by publishing an anti-sexual harassment policy, thus lagging behind emerging market leaders.
- In the UK, this stands at 45%, similar to Turkey’s 47%. Both are lower than the overall emerging markets average of 54%.
On the bright side: a better overall gender balance for U.S. and UK
● Taiwan stands out for its gender balance in the overall workforce, matching the representation levels seen in the U.S. and the UK.
- By contrast, South Korea has the lowest representation of women on executive teams in emerging markets, at just 6%.
- Representation of women is consistently low at all levels of Indian companies, with 19% on boards, 8% in the executive, 10% in senior management, and just 15% in the overall workforce.
Diana van Maasdijk, CEO, Equileap, commented, “The release of our inaugural report on gender equality in emerging markets confirms our ongoing commitment to delivering essential social data to institutional investors. Our findings illuminate an important global market, teeming with financial opportunities and innovation, where companies are demonstrating efforts to advance gender equality.
“We recognize significant strides with 38% of companies disclosing their gender pay gap, surpassing the 33% rate in developed markets, and with 54% of companies taking a public stand against sexual harassment in the workplace. However, the stark reality remains: only 0.9% of these companies have closed their gender pay gap, and gender balance remains low at leadership and workforce levels.
“Yet, now that the data is available, investors can play a crucial role in promoting gender equality in these vibrant markets. This not only aligns with our dedication to social responsibility but also solidifies our belief in the undeniable link between diversity, equity, and sustainable economic prosperity,” Maasdijk said.
Introducing the first of its kind benchmark for gender equality in emerging markets
Equileap and Solactive, a global, leading index provider, are thrilled to announce the launch of the Solactive Equileap Emerging Markets Gender Equality Index, an initiative that redefines the landscape of responsible investing.
- Comprising over 600 selected companies, our best-in-class methodology ensures a balanced representation across sectors, fostering a more equitable investment ecosystem.
- The index’s backtest performance highlights its potential, with an annual outperformance of 25% over its benchmark, a broad Emerging Markets Index.
- Since inception on 6 February 2019, the index has consistently outpaced expectations, boasting a remarkable 3.97% outperformance per annum.
With the Solactive Equileap Emerging Markets Gender Equality Index, investors can align their portfolios with their values, while driving positive social change.
