media release
9 March 2022
40:40 Vision one year on but more to be done for ASX200 companies
A year after the launch of 40:40 Vision, 17 ASX200 companies representing close to 25 per cent of the market capitalisation of all ASX 200 companies have signed up to the investor-led initiative to achieve gender balance in executive leadership.
The current signatory are household names with a combined value of $511bn and include: ANZ, BHP, Bluescope, Domino’s, IDP Education, IGO, Mirvac, NextDC, Origin, Pendal, Ramsay Health, SkyCity, South32, Tabcorp, Viva Energy, Webjet and Westpac.
“It’s wonderful that these 17 high-profile companies are leading the way and committing to making a difference on gender equality. This illustrates a shift in thinking from some of Australia’s most influential companies and is setting new standards we hope others will follow,” said Debby Blakey, HESTA CEO and 40:40 Vision Steering Committee Chair.
Ms Blakey said while a lot had been achieved in just a year, investors were looking for other ASX-companies to shift from talking about improving gender equality to backing that with action by committing to numerical, time-bound targets and transparent measurement of progress.
“There’s still 183 ASX200 companies we’re hoping will commit publicly to the principles of taking measurable action to improve their gender diversity,” Ms Blakey said.
“There’s a lot more that needs to be done; at this rate it would take 65 years or until 2086 before women make up 40% of roles in executive leadership teams”, says Blakey.
Ms Blakey is concerned about data indicating the number of women in executive positions at ASX200 companies has stalled, despite clear evidence[1] better gender balance in leadership is not only fairer but also good for business.
Ms Blakey said investors representing more than $6.3 trillion are backing 40:40 Vision because they know that a lack of gender diversity in leadership represents a financial risk.
“We’ve seen all too often the risk that can build at companies where poor culture and a lack of Board oversight leads to a company’s actions not matching their words,” Ms Blakey said.
“This credibility gap has been consistently shown to risk a company’s social licence and negatively impact long-term shareholder value.”
Research by the Bankwest Curtin Economics Centre (BCEC) and the Workplace Gender Equality Agency (WGEA)[2] found that an increase in the share of female ‘top-tier’ managers by 10 percentage points or more led to a 6.6 per cent increase in the market value of Australian ASX-listed companies, worth the equivalent of AUD$104.7 million.
Ms Blakey said that for investors the path forward is clear: “We know better gender balance means better financial performance, better governance and stronger long-term company value. That’s why we’re urging more ASX200 companies to become a part of 40:40 Vision and ensure their shareholders, employees and the broader community benefit from improving gender diversity.”
40:40 Vision was launched in October 2020 and is supported by industry partners Chief Executive Women, the Australian Council of Superannuation Investors, 30% Club and the Workplace Gender Equality Agency.
Public commitment to 40:40 vision provides investors a level of assurance that the signatory will pursue a gender diverse executive team, achieving a balance of 40 per cent women, 40 per cent men and 20 per cent any gender in their executive leadership by 2030. They will also set gender targets in the shorter term, make a public plan for how they will meet those targets and report annually on their progress.
“The past 18 months has brought into sharp focus the need for companies to support their workers through better diversity and inclusion,” said Ms Blakey.
“The time for rhetoric about gender balance is over. We are calling on ASX200 companies to sign up to the 40:40 Vision and make material changes to the way they build their executive teams and run their businesses.”
For more information and to track progress visit www.hesta.com.au/4040Vision
ENDS.
[1] Chief Executive Women ASX200 Senior Executive Census 2020 Report
[2] Gender Equity Insights 2020: Delivering the business outcomes