The number of women sitting on company boards of directors has continued to grow, underscoring the gradual progress being made on greater diversity across the globe, an annual study by BNP Paribas Asset Management has found. However, differences persist from country to country, highlighting the need for continued shareholder action through proxy voting and dialogue.
Between 2021 and 2023, the number of women on boards rose in all regions: Women hold an average 29% of the seats at companies in which we invest – that is an increase of two percentage points from 2022.1
The increase comes two years after the implementation of the European Directive to promote board director equality.2 It aligns with our commitment to diversity, which is one of the pillars of our recently updated Global Sustainability Strategy.
As an asset manager, we believe we have a crucial role to play in advancing the feminisation of decision-making bodies through voting and constructive dialogue. However, as disparities remain, we will continue our efforts to promote gender and broader diversity within the companies we invest in.
In all regions, we invest in companies with higher gender diversity compared to the database by ISS, a leading provider of corporate governance services.
Encouraging results despite differences between countries
Across the globe, France is in the lead in terms of women’s representation in BNPP AM portfolios (45% in 2023).
In our portfolios, the most significant changes were in
- Asia (14% in 2022 vs. 18% in 2023)
- Latin America (14% in 2022 vs. 19% in 2023)
- Australia and New Zealand (35% to 40% respectively).
Europe grew to 37% in 2023 from 36% in 2022, but we should note that it is already one of the most advanced regions in term of women board memberships.
Parity is far from being achieved in Asia, particularly Japan, which has 17% of women on the boards of BNPP AM portfolio companies. It lags India, Malaysia, and Singapore with respectively 20%, 33% and 23% – a higher diversity rate than their neighbours.
The US has 33% women directors in our portfolios, which is a slightly lower percentage than required by our policy.
“Gender diversity on US boards has steadily improved in recent years, although it does not yet meet our standard. Low director refreshment rates, outdated recruitment methods and an US aversion to setting quotas – or even targets – contribute to the situation. This is not just about setting the right tone and advancing equity in the workplace, it is also about effective risk management. If boards are truly seeking the best and brightest, they should be gender balanced” – Johanna Lasker, CEO of BNP Paribas Asset Management, USA
We require a minimum 35% women on boards in Europe, North America, Australia, South Africa, and New Zealand, and 20% in Latin America, Asia, and the Middle East.
For 2025, we have set a higher threshold – 40% for women board membership in Europe, North America, Australia, South Africa, and New Zealand.
Our ambitious voting policy
Since 2019, we have applied specific voting criteria on gender diversity regarding the election of directors. The requirements have gradually been strengthened, using a regional approach.
In 2023, we rejected 48% of the board of directors’ proposals at annual shareholders meetings on grounds of gender parity.
In addition to voting at AGMs, we engage with investee companies. In 2023, out of the 38 companies we targeted, 11 adopted changes and raised the ratio of female to male directors to reach our gender diversity threshold. While not yet at our threshold, eight companies made improvements or commitments to reach 40% in 2025. We believe this shows the effectiveness of our engagement.
We believe gender parity has a fundamental bearing on whether economies and societies thrive. Since women make up one half of the world’s talent, it makes great economic and business sense to make the most of that.
We see diversity as a source of financial outperformance and sustainable value creation. Many studies have shown that having women on a board of directors is good for business.
[1] The study compares the 3 250 companies in which BNPP AM invests with around 21 000 listed companies included in the Institutional Shareholder Services (ISS) database. Data is at the end of December 2023.
[2] The directive requires all large, listed companies to take measures to increase the presence of women in leadership roles and at board level by July 2026. More: https://www.europarl.europa.eu/news/en/press-room/20221118IPR55706/parliament-approves-landmark-rules-to-boost-gender-equality-on-corporate-boards
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