Norway's sovereign wealth fund to invest in companies with at least 30% of women on their boards
A new step towards gender equality that might have also positive economic consequences
G-Club
February 18th, 2021
February 18th, 2021
The Norwegian sovereign wealth fund is increasing its commitment to diversity and gender equality. Among the goals set for 2022, there's the will to bridge the gap between men and women in the workplace by investing in companies with at least 30% of women on their boards.
What we want to see is better representation of women on the boards. Diversity is good for the board because it brings better perspective, it is better for decision-making and increasingly important for the legitimacy of companies.
Carine Smith Ihenacho, chief governance and compliance officer of the Oslo-based central bank's financial institution, said, confirming, according to Reuters, what it states in an internal document detailing the guidelines for its investment policy in the coming years.
Created in the 1990s to invest the country's oil and gas revenues abroad, the fund has grown until it now holds stakes in some 9,200 companies around the world, with 1.5% of all securities listed on the stock exchange. For this reason, due to its global influence, the new decision could have a strong impact on the policies of many companies, starting a significant change in perspective that could also positively affect revenues. The theory of the Norwegian sovereign wealth fund is that companies committed to gender diversity are good investments not only ethically, but also economically. Notably, a percentage of women below 30% means that they're "recruiting CDA members too narrowly and do not have a clear view of the full range of backgrounds and skills needed to be effective".
How to guarantee equal opportunity and promote gender balance has become one of the most discussed topics of recent times. Although there is still much to be done, some small steps are being taken. In 2020, for example, according to a report by Nextail, the presence of women among the CEOs of the fashion industry grew by almost 100%. Are you wondering what the current situation is in Italy? In our country, gender equality is regulated by the Golfo-Mosca Law, which stipulates that all listed companies must have a percentage of at least 40% women on their boards (the original version approved in 2011 was 20%).
