This statistic is a call to action* *It’s how many leading global fnancial institutions achieved gender balance in 2021 Sustainable Policy Institute The Sustainable Policy Institute is a high-level community designed to meet the policy, regulatory and investment challenges posed by environmental, social and governance factors. Membership ofers insight through Analysis and Meetings, drawn from the expertise of OMFIF’s in-house specialists and global network of public and private sector members. The Institute publishes regular data, updates members on new developments and innovations and convenes discussions in a variety of formats to help shape the sustainability agenda. omfif.org/spi For membership enquiries, please contact Mingiyan.Shalkhakov@omfif.org omff.org FOREWORD 3 A ‘she-cession’ hurts us all Ignoring the fact say childcare responsibilities are the main reason, that the pandemic according to the latest McKinsey and Lean In ‘Women in the Workplace’ study. has affected women Why does this matter? Several studies have found more than men that the share of women in unpaid care work has a will deepen the high and negative correlation with female labour force economic fallout participation rates. It also has a negative impact on from Covid-19. women’s chances for professional and technical jobs or holding leadership positions. If this disproportionate By Ana Botín, impact on women goes unaddressed, it will not only put Executive Chairman at risk gender equality, but also have global economic of Santander. consequences. During the Covid-19 crisis, the priority of most financial institutions has been (and still is) the wellbeing of their teams. At Santander, we provided the tools for EVERY March we take stock of women’s rights in remote working after sending home 100,000 employees. the world: looking at how far we’ve come and, more We also adapted our branch network to ensure the importantly, how much further we still have to go. But safety of staff who continued to interact with customers 2020 was a year like no other for gender equality. in person. As work-life balance and stress brought The social and economic consequences of the further challenges, we implemented flexible working pandemic have fallen disproportionately on women. arrangements and gave mental health support, as well as There is even a word for it: ‘she-cession’, coined by advancing payments and granting special loans. C. Nicole Mason. It highlights that, for the first time in Organisations can and must do their part, but history, the US is experiencing an economic downturn government policies are crucial. If governments work where unemployment and income losses are affecting with the private sector to develop effective, evidence- women more than men. based interventions, we But it is not only happening in the US. According to can counter workplace ‘If the the recent International Labour Organization report, in inequality while disproportionate 2020 the global loss in employment for women was 5%, encouraging a balanced impact on women versus 3.9% for men. Why are women more at risk than recovery. Promoting men of losing their jobs? A quarter of global job losses gender equality could goes unaddressed, come from sectors in which women account for a higher add $13tn to global it will not only put at proportion of the workforce: leisure, hospitality and retail gross domestic product risk gender equality, have all been hit hardest. by 2030. If we ignore but also have But there’s another critical reason. Lockdowns have the fact that the global economic meant many of us (including men) have had to provide pandemic is affecting additional childcare, education and housework: 52 hours women differently, our consequences’ a week on average, more than another full-time job. economic recovery will But the burden of unpaid care work falls unequally on be unequal and slower. women. Even before the pandemic women globally were As we continue to plan our way out of this crisis, doing on average 75% of unpaid care work. According to we must remember that a ‘she-cession’ hurts us all. United Nations Women, during Covid-19, women have When we support women, we support families and been doing a full working day of unpaid childcare more communities: the financial empowerment and economic than men each week. wellbeing of women is good for everyone and it is the One in four women have considered downshifting foundation of an equitable, resilient and sustainable their careers or leaving work altogether, and the majority post-pandemic world. • 4 GBI 2021 About OMFIF AUTHORS: With a presence in London, Singapore, Danae Kyriakopoulou Washington and New York, OMFIF is an Chief Economist & Director of Research independent forum for central banking, Clive Horwood economic policy and public investment — a Managing Editor & Deputy Chief Executive Officer neutral platform for best practice in worldwide public-private sector exchanges. Kat Usita Deputy Head of Research For more information visit omfif.org or email [email protected] Natalia Ospina Research Assistant Levine Thio Research and Programmes, Asia Pacific In partnership with PRODUCTION: Simon Hadley Director, Production William Coningsby-Brown Assistant Production Editor Sarah Moloney, Fergus McKeown Subeditors OMFIF wishes to thank the following contributors : Marouane El Abassi Henriette Kolb Banque Centrale de Tunisie International Finance Corporation Caroline Abel Central Bank of Seychelles Rose Kerlin AustralianSuper Helena Maria Adegas Banco de Portugal Jamie Krulewitz Fitch Ratings Ltd Aishah Ahmad Central Bank of Nigeria Sherry Madera London Stock Exchange Group Elsie Addo Awadzi Bank of Ghana Monique Nsanzabaganwa National Bank of Rwanda Anita Angelovska Bezhoska Siritida Panomwon Na National Bank of the Republic Ayudhya of North Macedonia Bank of Thailand Ana Botín Alessandra Perrazzelli © 2021 OMFIF Limited. All Rights Reserved. Santander Banca d’Italia Strictly no photocopying is permitted. It is Chad Cecere Heike Reichelt illegal to reproduce, store in a central retrieval Japan Government Pension The World Bank Group Investment Fund system or transmit, electronically or otherwise, Susan Revell any of the content of this publication without Mary C. Daly BNY Mellon the prior consent of the publisher. While every Federal Reserve Bank of San Francisco Gent Sejko care is taken to provide accurate information, Bank of Albania the publisher cannot accept liability for any Susan Sabanci Dinçer Rannveig Sigurðardóttir Akbank errors or omissions. No responsibility will be Central Bank of Iceland accepted for any loss occurred by any individual Bertille Delaveau Anne Simpson due to acting or not acting as a result of any Banque de France CalPERS (California Public content in this publication. On any specific Verónica Artola Jarrín Employees’ Retirement matter reference should be made to an Banco Central del Ecuador System) appropriate adviser. Stavroula Kampouridou Aniela Unguresan Company Number: 7032533. ISSN: 2398-4236 Bank of Greece EDGE Strategy omfif.org 5 CONTENTS EXECUTIVE SUMMARY 6 SOVEREIGN FUNDS Diversity in a time of crisis Danae Kyriakopoulou YEAR IN REVIEW 8 Path to progress Levine Thio CENTRAL BANKS Sovereign funds struggle to 54 make progress Kat Usita PENSION FUNDS Missed opportunities slow central 10 bank drive Danae Kyriakopoulou GBI 2021 SURVEY WAIT ACT Progress requires positive action 28 OMFIF’s survey of 50 institutions Pension funds should apply pressure 60 shows that many need to do more to Kat Usita promote diversity – but there are some encouraging signs. Natalia Ospina DATABANK OMFIF Gender Balance Index 67 COMMERCIAL BANKS Ranking and score of 185 central banks, 50 commercial banks, 72 sovereign funds and 233 public pension funds METHODOLOGY 78 Banks fail to live up to their promises 41 Clive Horwood C-Suite still leaves sour taste 48 Banks need to redefine their senior 52 role models 6 EXECUTIVE SUMMARY GBI 2020 Diversity in a time of crisis Danae Kyriakopoulou, Chief Economist & Director, Research, OMFIF THE THEME of this year’s International Women’s Day Elevating anecdotal experiences of a male-dominated is ‘Women in leadership: achieving an equal future in field into aggregate statistics is a sobering exercise. Out of a Covid-19 world’. As many of the policy-makers and 540 institutions in the index, only 71 are headed by women practitioners writing in this report note, the pandemic has and 56 have no women at all in their executive teams and affected men and women differently. Science has shown boards. Only three of the institutions covered — or less than that men are more vulnerable to the virus itself, but the 1% — achieved a perfect gender balance score of 100. just economic and social cost of the crisis has been higher 12 of these — or just over 2% — scored 90 or more, a level for women. The pandemic has also tested leadership and that indicated the institution is close to achieving balance. shown the benefits of diversity. In 2019, then IMF Managing By confronting people with the numbers, we hope to Director and now European Central Bank President mobilise decision-makers towards improving results and Christine Lagarde told the Daily Show’s Trevor Noah that, measuring progress. ‘Whenever the situation is really, really bad, you call in the The conclusions are clear: lack of diversity in the field woman’. is a structural, persistent problem. Progressive policies 2021 has started strongly with a series of historic are needed to correct the historic underrepresentation of appointments of women in leadership. In january, Kamala women and level the playing field. And, while more balanced Harris was sworn in as the first female US vice president talent pools bring hope, the issue will not go away by itself. and janet Yellen as the first female US treasury secretary. The index tracks the presence of men and women in In February, jane Fraser became CEO of Citi, the first decision-making positions in financial institutions. A score woman to lead a major US bank, while Ngozi Okonjo-Iweala of 100 represents perfect balance (see methodology become the first woman to assume the office of Director- on page 78).