European Women on Boards Gender Diversity Index 2020 This project is co-funded by the Rights, Equality and Citizenship Programme of the European Union 668 COMPANIES STUDIED GDI GENDER DIVERSITY INDEX 34% women on boards Perfect gender equality 28% 1 women in general leadership functions Only 62 companies with a GDI of 0.8 or more 0.8 138 companies 17% 0.7 with a GDI of women in executive level of 0.7 or more company decision-makers 0.56 Average Only 42 companies have a female CEO 0.3 50 companies with a GDI of 0.2 0.3 or less 129 companies have at least one female 22 member of the C-suite companies with a GDI of 0.2 or less Only 9% 0 Chairs of Boards are women This project is co-funded by the Rights, Equality and Citizenship Programme of the European Union Content 04 Executive summary 06 Foreword 08 Introduction 11 Terminology 12 Overall findings 25 Commitment to fostering inclusion and diversity 28 Sectoral findings 31 Country findings 97 Annex – Methodology WOMEN ON BOARDS AND IN CORPORATE LEADERSHIP GENDER DIVERSITY INDEX 2020 3 Executive summary The year 2020 saw many disruptions that shook up not only individual businesses but also our entire economies and societies. Besides the direct health consequences This report analyses women’s participation in of COVID-19, the pandemic damaged the corporate governance in the largest European well-being and work-life balance of many companies that are listed in the STOXX 600 employees while also exposing many to Europe index or, in some countries, national redundancies or temporary unemployment stock exchange indexes. In this 2020 edition measures. Women were hit harder. They were we see, on one hand, that gender equality in more affected by job losses but also suffered corporate leadership is still far from reality: greater stress from having to combine n 28% of business leaders in executive and homework with home schooling and other non-executive roles in the 668 companies family duties. As a consequence, inequalities in analysed were women; societies deepened. n Women represent only 34% of all board At the same time, 2020 was a year of social members in the companies analysed. Board movements and protests calling for addressing level is actually the layer of governance with inequalities. Although these movements focused greatest participation of women; more specifically on inequalities related to ethnic n The situation is worst at executive level where origin, they raised broader debates about women represent only 17% of all leaders; and inclusion and diversity in workplaces. n Only 42 (6%) of 668 companies analysed When looking at women’s participation in have a female CEO. Only 130 (19%) of corporate leadership in European companies, the companies have a woman in at least one of number remains low. But there is some good these roles: CEO, COO or CFO. news as, in some areas, we observed notable improvements since 2019 edition. 4 © KANTAR On the other hand, in this 2020 edition we see At the same time, we see companies that are promising signs of improvement: already doing relatively well on the indicators analysed improving on the presence of women n The number of companies in the sample with at the most senior levels. On the other hand, high participation of women in decision companies at the bottom end of the ranking are making has doubled in a year. This is making minimal if any progress. measured by the Gender Diversity Index explained in this report. The number of Companies from Norway, France, the UK, companies that reach an index of 0.8 or more Finland, and Sweden are closest to having has increased from 30 to 62 in a year. The gender-balanced governance and this is ideal score of the index is 1; relatively unchanged since 2019. n This improvement is mostly driven by the fact Companies in the financial and insurance that there are now 87 companies in the services, consumption goods and retail and sample where the share of women in all “other” (i.e. utilities and travel and leisure) leadership roles is 40% or more, and this tend to have greater gender balance in their is a notable improvement compared to 47 in leadership than those in other sectors, but the 2019; and differences are not statistically significant. n There are substantially more women who joined corporate leadership roles than those who left in one year. While women were 35% of all persons who were newly appointed to leadership roles, they were only 24% among those who departed. WOMEN ON BOARDS AND IN CORPORATE LEADERSHIP GENDER DIVERSITY INDEX 2020 5 Foreword It is with pride that we present to you the comprehensive European Women on Boards Gender Diversity Index (GDI). This index was developed to allow companies to benchmark themselves Päivi Jokinen against other companies in their country or sector with Chairwoman regard to the diversity of their boards and other key European Women positions. It has been our aim to create a study that provides on Boards an objective European benchmark on gender equality and this 2020 research gives an excellent point of comparison to the index of 2019. European Women on Boards is a Brussels-based non- profit association with focus on promoting gender equality in European decision-making. In addition to conducting research on gender diversity across the largest European corporations, we disseminate best practices on corporate governance policies and measures which favor gender diversity, contribute to the development and empowerment of women who are candidates for board and senior executive positions, train, mentor and give support. In short, European Women on Boards is a unique constantly growing network of experienced female leaders. The starting point to our work is the firm belief that gender diversity leads to diverse thinking and better decision making. There is no doubt that women and men complement each other. In life, at work. In large, medium and small companies, on boards and in governments. Women are an important target group for companies, their needs and insights can often differ greatly from the needs and insights of men. In a heterogenous environment with more diversity of thought, perspectives get wider and business risks decrease. And utilizing the full labor force with all its capacity, Europe can 6 © KANTAR ensure its competitiveness in the global most diverse companies, 7 come from the economy. This is an opportunity that we UK and 6 from France. From the results need to tap into. we see that there is a clear difference in results of countries where governments Our research shows that despite some have implemented quota legislation vs. encouraging progress in recent years, countries with softer measures. Sweden the under-representation of women on and Finland are the only two EU member corporate boards and in management states where self-regulation has brought positions remains an important challenge visible results. for EU Member States. Some 13 % of the 668 companies studied are close to gender We cannot tackle inequality if we are equality at board and executive level. There in denial that it exists. Our research is are now 87 companies where the absolute clear – there is room for improvement share of women in leadership is 40% or throughout the corporate world and in more, which is a significant improvement all European member states. We should from 47 in 2019. In 60% of the companies continue to make sure that everyone feels for which data is available for both years, valued and able to be themselves in our society. Women belong in all places where there was an improvement in their GDI. decisions are being made, they should not However, despite the excellent progress be the exception. At European Women on made in the top companies, there is Boards, we invite both men and women significantly less change at the bottom end. to join the change and to work together This is the reason why we want to publish for better decision-making and improved the names of both the top and the bottom business results. Positive actions at country end companies and to compile best practice level influencing both political decision- guidelines for any company or political makers and corporations large and small decision-maker that is interested to hear are important in driving this change. We about these learnings. know that diversity and inclusion are Looking at the data on country level, essential – let’s consider this in our daily companies from Norway, France, UK, business lives. Finland and Sweden were the closest to having gender balanced governance in 2020. From the 20 best practice leading, WOMEN ON BOARDS AND IN CORPORATE LEADERSHIP GENDER DIVERSITY INDEX 2020 7 Introduction “The coronavirus disease (COVID-19) pandemic was a wake-up call for gender equality in Europe. It reminded us about everyday gender inequalities in our society that often go unnoticed – from the shortage of men working in the care sector to the reality of violence facing women in abusive relationships ” EIGE Gender Equality Index 2020 The year 2020 saw many disruptions that shook At EU level, the debate about the need for further up not only individual businesses but also entire action to increase women’s participation in corporate economies and societies. The COVID-19 pandemic decision making has been revived. Ursula von der had negative effects on many companies’ financial Leyen, President of the European Commission, set performance, and put a stress test on teams and equality as one of the core priorities for her and her their cohesion. Besides the direct health team of Commissioners’ mandate, and this includes consequences of the virus, the pandemic also a clear focus on gender equality2.