Boardrooms with more women offer more on climate, says Arabesque

A conference room is seen in an office building in Manhattan, New York City, New York, U.S., May 24, 2021. REUTERS/Andrew Kelly

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  • The research focused on the 1,000 largest companies in the world
  • Most diverse 20% more climate aligned

LONDON, March 22 (Reuters) – Companies with more women on their boards are more likely to be on track to meet global climate goals, an analysis of investment research and market research showed on Tuesday. Arabesque asset manager.

The study, the first to tackle the topic, found that the most diverse 20% of the world’s largest 1,000 companies were more aligned with the goal of capping global warming at 1.5°C (2.7 Fahrenheit) above the pre-industrial average by 2050.

Achieving this goal is crucial to avoiding irreversible damage to the planet, say UN scientists. Read more

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Across the group, including UK FTSE (.FTSE), Italian MIB (.FTMIB), S&P 500 (.SPX), French CAC (.FCHI), Japanese Nikkei (.N225), German DAX (.GDAXI) and the Nordics OMX, 75% of the most diversified companies were in line with 1.5C.

Arabesque said it gave each company a diversity score by looking at data such as board diversity and diversity goals, and a temperature score after checking whether the company’s climate plans were in good shape. way to support the objective.

Barbara Krumsiek, Arabesque board member and former chief executive of asset manager Calvert Investments, said the data showed a strong correlation and supported academic studies on the matter.

“So far, all the data I see reinforces the original premise that diversity and environmental performance are linked,” Krumsiek said.

Conversely, 37% of companies in the bottom 20% of companies were headed for a worst-case trajectory of 2.7°C or higher, and most did not disclose any significant data, according to the research.

“For investors, the lack of disclosure should be a red flag,” Krumsiek said.

The company data underlying the analysis has been collated into the ESG Book, a digital source of sustainability data backed by some of the world’s top investors, regulators and companies.

The data showed mixed progress on diversity between 2017 and 2021. Almost all of the companies analyzed had committed to diversity policies, but far fewer had set concrete diversity goals, Arabesque said.

Reuters Charts

In Britain, 54% of FTSE 100 companies now had diversity targets, an increase of just under a quarter from 2017, while the percentage of the largest US companies with concrete targets increased. almost tripled over the period to reach 47%.

Italy’s top companies had the lowest percentage of diversity targets, at 35% but up a fifth since 2017, while Germany slipped, with 80% of companies having a target, compared to 83% in 2017.

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Editing by Edmund Blair

Our standards: The Thomson Reuters Trust Principles.

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