Investing In Women–And Not Just In The Abstract

Companies with more women on boards and in leadership positions outperform, financially and otherwise, companies with fewer women–and yet, this information doesn’t typically factor into investment decisions. Now, some firms are giving investors the option to invest in companies that promote gender equality.

You can probably name the CEOs of many global corporations–but you might not be able to name the people who serve on the boards. Nor might you be able to say how many women serve on the boards.

And yet, corporate boards make decisions that affect shareholder value, company brand and reputation, global economies and industries, employment, the environment, human rights, the fortunes of suppliers and distributors, health care and pensions, and much more. And studies show that companies with more women on boards and in leadership positions outperform–financially and otherwise–companies with fewer women.

Knowing that companies with gender diversity perform best, you’d imagine that all investors would factor this information into their investment decisions. Unfortunately, not yet. But the investment firms that are leading the way tend to be those with sustainable investing solutions that integrate environmental, social, and governance (ESG) factors into investment analysis and decision-making.

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