How listed companies are advancing in Europe
The drive for greater gender equality in the corporate world has gained significant momentum, particularly in the wake of growing demands for improved transparency and inclusivity. Recent data from Euronext’s My ESG Profile offers a clear picture of how companies listed on the exchange are responding to these calls for action, especially concerning gender diversity on corporate boards.
2023: A landmark year for gender diversity in Euronext-listed companies
In 2023, companies listed on Euronext demonstrated impressive progress in gender diversity, particularly in the area of board composition. The average representation of women on boards of large caps reached 43%, surpassing the targets set by the EU’s Gender Balance on Corporate Boards Directive. The Directive, which mandates that large EU-listed companies must achieve at least 40% gender representation among non-executive directors by the end of 2024, has set a new benchmark for corporate governance.
What’s even more striking is that 337 large Euronext-listed companies — over 90% of the total — have already met or exceeded the Directive’s requirements three years ahead of schedule. This proactive approach by large caps serves as a beacon of commitment to inclusive governance, setting an example for smaller companies and markets across Europe. These companies are already leading in board gender diversity, reinforcing their commitment to inclusive governance and serving as a benchmark for the market. Euronext remains committed to empowering sustainable finance and fostering equitable corporate cultures.
A growing commitment to ESG reporting: gender diversity on the rise
Euronext’s efforts to promote ESG transparency continue to show results, with an overwhelming 99.4% of companies now reporting on board gender diversity. This marks a significant increase (+3.0 percentage points) in reporting rates, reflecting a growing commitment to diversity, equity, and inclusion. Over the last three years, this increase in reporting has been consistently higher than in previous years, further underscoring the growing importance of ESG factors in investment decisions.
Industries such as Healthcare and Utilities have been leading the charge in enhancing gender diversity, with significant gains of +2.9 percentage points and +2.5 percentage points, respectively. These sectors, traditionally seen as slower to evolve, have shown that gender inclusivity is not just a matter of regulatory compliance, but a key factor in fostering a more resilient, innovative corporate environment.
The path ahead: continuing to drive gender equality in leadership roles
Despite the impressive strides made, the journey toward full gender parity in the corporate world is ongoing. The average share of women in management roles across all company sizes saw the most significant increase in 2023, with an improvement of +1.7 percentage points, aligning with the steady positive trend from previous years. Large, mid, and small-cap companies alike have shown commitment to enhancing gender representation in management roles, with Basic Materials and Utilities seeing particularly strong improvements in this area.
However, while industries like Healthcare and Real Estate have made substantial progress, some sectors, such as Basic Materials and Consumer Discretionary, are still catching up when it comes to achieving gender balance on boards and within their workforces. This highlights the need for continuous focus on gender diversity across all levels of a company’s structure.
The impact of ESG reporting on corporate culture and performance
As the demand for sustainable investing continues to grow, investors are increasingly prioritising companies with strong ESG credentials. This trend is particularly evident in the gender diversity metrics within the My ESG Profile. By providing a comprehensive overview of gender diversity alongside other ESG factors, Euronext empowers investors to make more informed decisions that align with their values.
Furthermore, the push for better gender representation is not just about improving corporate image — it is also about fostering better business outcomes. Research consistently shows that companies with greater gender diversity, particularly in leadership roles, tend to be more innovative, resilient, and financially successful. By providing transparency on these metrics, Euronext not only helps investors but also motivates companies to implement more inclusive practices, knowing that diversity is a key driver of long-term success.
A positive but steady trend toward gender equality
While the gender balance on corporate boards and in management bodies is improving, challenges remain. The slow but steady progress seen in the gender diversity metrics from Euronext-listed companies shows that significant work is still needed to shatter the glass ceiling and eliminate systemic barriers to gender equality in the workplace.
As the EU Gender Balance Directive continues to take effect, and as the demand for ESG transparency grows, it is expected that more companies will adopt more ambitious strategies to enhance gender diversity. In doing so, they will not only benefit from improved investor confidence but also contribute to a more equitable corporate culture — one where gender parity is not just an aspiration but a reality.
For now, Euronext’s commitment to empowering sustainable finance and fostering gender equality across its listed companies remains a key step in driving both social change and business success.
Driving gender diversity through enhanced ESG transparency
Euronext is steadfast in its efforts to improve transparency around ESG practices, with a specific focus on gender diversity. By providing accessible and comprehensive ESG profiles, Euronext empowers investors to align their portfolios with ethical and sustainable standards. This transparency encourages companies to adopt more inclusive and diverse strategies, knowing that failure to meet these growing expectations could result in less favourable assessments from investors prioritising ESG criteria.
Moreover, as a leader in the market infrastructure, Euronext plays a pivotal role in guiding investments towards sustainable projects. Euronext offers a range of ESG products, including bonds, derivatives, and exchange-traded funds (ETFs), as well as tailored corporate services designed to support companies on their ESG journey. This reinforces Euronext’s commitment to promoting responsible investment practices and driving positive change across the corporate sector.