A report by Ernst & Young notes that female representation on European company boards in the financial sector increased in 2022, though women are still under-represented in top functions like CEO and CFO.
Boards of companies in the MSCI European Financials Index were evaluated by Ernst & Young. The percentage of women serving on corporate boards has increased from 37 per cent in June 2022 to 42 per cent at the beginning of 2023, thanks to appointments made by companies in the financial sector.
There are more women on boards than ever before, but they are still underrepresented in top executive and financial roles. 62 per cent of the current male board members hold or have held positions beginning with the letter “C,” while only 51 per cent of the current female board members do so.
“The drive for gender balance in the boardroom is playing out prominently across UK financial services. Ensuring that boardrooms reflect the diverse customers and societies they serve remains a work in progress, but the substantial increase in female representation in the past six months alone is particularly encouraging,” said Anna Anthony, EY UK Financial Services Managing Partner.
EY noted that a more diverse board of directors benefits both society and the bottom lines of businesses. Among the financial community, 44 per cent of investors value diversity as a key factor when deciding which companies to back. Just 16 per cent of people claimed it did not affect their decision.
The financial industry is also starting to place a greater emphasis on sustainability expertise among employers. Nearly a third of the companies in the study had board members with professional experience in this area by the end of 2022, up from 19 per cent in June of that year.
EY found that there was a correlation between women’s representation and sustainability expertise. 72 per cent of directors with expertise in sustainability are women, making them the most common group for this role.
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