Annual Report on Gender Equality Assessment for the Year 2019
In the latest Gender Balance Index report, a call to action is issued to address the disappointing picture of gender diversity in public financial institutions such as central banks, sovereign funds, and public pension funds. The index, now in its sixth year, has shown a six percentage point improvement in gender diversity in central banks since 2018, but the overall state of gender balance remains dismal.
European public pension funds have emerged as the highest scorers with 41%, followed closely by North America at 36%. However, the picture is far from balanced. Asia has the lowest regional central bank GBI index score at 9%, and only 14 central banks globally are headed by women. Thirty-five central banks have no women in senior positions.
The index provides a comprehensive and methodical analysis of gender diversity, measuring the presence of men and women among senior staff, weighted by seniority. A score of 100% would be awarded to a perfectly gender-balanced institution. Central banks in 2019 scored 25%, a six-percentage-point increase from 2018. Sovereign funds scored 17%, with only eight funds headed by women.
The lack of gender diversity in these institutions poses a significant challenge, particularly in terms of ESG (Environmental, Social, and Governance) investment. Poor diversity hampers the ability of these institutions to make informed decisions that consider the social and environmental impacts of their investments.
The Gender Balance Index also sheds light on the gender imbalance in senior positions within broader financial institutions. For instance, leading U.S. banks in 2023 had female executives and senior leaders ranging from about 26% to 42%, indicating that even among top financial institutions, gender parity has yet to be achieved.
The underrepresentation of women in senior positions reflects ongoing structural challenges in access to leadership opportunities. It is crucial that public financial institutions address these issues to ensure a more equitable and inclusive workforce, and to make informed decisions that consider the diverse perspectives of the communities they serve.
[1] Gender Balance Index 2019 Report [4] U.S. Bank Gender Diversity Report 2023
- Despite European public pension funds having the highest score in the Gender Balance Index for central banks, the overall representation of women remains disappointing, with only 14 central banks worldwide being headed by women and 35 having no women in senior positions.
- Adequate gender diversity is essential in public financial institutions, as a lack thereof poses a significant challenge, especially in terms of Environmental, Social, and Governance (ESG) investment, since it hinders the ability to make informed decisions considering the social and environmental impacts of investments.
- The comprehensive analysis provided by the Gender Balance Index not only focuses on central banks but also extends to other financial institutions, revealing the gender imbalance in senior positions within broader financial institutions, like leading U.S. banks, where the percentage of female executives and senior leaders ranges from about 26% to 42%.
- To ensure a more equitable and inclusive workforce, public financial institutions, including central banks, sovereign funds, and public pension funds, must proactively address the ongoing structural challenges in access to leadership opportunities, promoting diversity and gender parity to make informed decisions that cater to the diverse perspectives of the communities they serve.
