MSCI recently published its Women on Boards and Beyond: 2023 report, which documents the state of women’s representation on corporate boards. MSCI has produced this report since 2009 and began tracking diversity beyond just gender this year.
Key points from the report:
- Women held about 26% of board seats at worldwide mid- and large-cap companies tracked in the MSCI ACWI Index, up by a little over 1% from 2022.
- Women hold far more directorships in developed markets than emerging markets.
- Boards in general were more diverse than executive suites, in terms of both gender and ethnicity.
- Ethnic and racial diversity disclosures are still limited and incomplete.
This latest report confirms the incremental progress made in the past year, and points to continued diversity gains across the board.
At Praxis Mutual Funds, we are encouraged by this trend, and we support greater board diversity through corporate engagement and through our votes at company meetings. We are a member of the Thirty Percent Coalition, which champions diversity on corporate boards and in senior leadership and provides a forum for investor-members to collaborate on corporate engagement.
Praxis advocates for board diversity based on our core values, in which we expect companies to exhibit responsible management practices and demonstrate concern for justice in a global society.
We believe that leadership diversity helps improve the outlook for long-term stability and profitability in companies, in addition to encouraging better policies for all stakeholders.