Women's leadership is key for global companies looking to tap into $12 trillion worth of new opportunities linked to the sustainable economy, according to a new report.
The Better Leadership, Better World: Women Leading for the Global Goals report released on Monday by WomenRising2030, an initiative launched by the Business and Sustainable Development Commission, argues that companies risk losing out on significant economic value by not having female leaders on board.
“We are at a tipping point when it comes to equality in the workplace,” said Marisa Drew, the chief executive of Credit Suisse’s impact advisory and finance department and one of 25 senior women leaders interviewed for the study.
She added that the report provides a business case for gender-balanced leadership. “Business benefits when all employees have a shared vision of the future – one that is fairer, more inclusive and sustainable.”
WomenRising2030’s study - a call to action for companies to build gender-balanced teams - describes women leaders as "accelerators" that are able to help companies unlock the $12tn “economic prize” associated with pursuing the UN's Sustainable Development Goals (SDGs) - 17 objectives set out by world leaders to end hunger, poverty, and inequality and effectively tackle climate change and resource degradation by 2030.
The $12tn figure was identified last year by the Business and Sustainable Development Commission's flagship report, Better Business, Better World, which found a compelling financial incentive for pursuing sustainable business models, which could create up to 380 million jobs by 2030.
WomenRising2030’s report found that companies with more women on their boards are more likely to invest in renewable power generation, low-carbon products, and energy efficiency. The study also found evidence that businesses with more women in high-level management positions, particularly on directorial boards, are better able to shift their business’s focus from maximising short-term profit to achieving longer-term growth goals.
"Women’s leadership cannot be a ‘nice-to-have’ for business. Companies that continue to have male-dominated leadership will miss out on business opportunities unlocked by gender-balanced teams,” said Paul Polman, chief executive of Unilever and a commissioner for the Business Commission, adding that at the current pace it will take 217 years to achieve gender equality. “That’s bad news for economy and society.”
The Business Commission’s latest report identifies six leadership competencies critical to successfully developing business opportunities in line with the UN's SDGs. These include long-term thinking, innovation, collaboration, transparency and social inclusiveness - with women key to deploying the competencies within more gender-balanced leadership teams.
The Better Leadership, Better World reportstressed the lack of female leaders is a global business issue, with women accounting for 5 per cent of all chief executives roles among S&P 500 companies. The UK has a worse statistic; in 2016, there were more male chief executives named David (eight) than female chief executives overall (six) in the FTSE 100.
However, change is underway. The study highlighted promising signs such as a letter sent in January by the world's largest asset manager BlackRock to 367 Russell 1000 companies with fewer than two women directors. The letter asked its recipients to justify how the lack of gender diversity on their boards aligned with their long-term strategies and to report on any efforts to address this imbalance.
The same month, the UN announced it had achieved gender balance across senior management; of its 44 most senior positions, excluding the Secretary General, 23 are now held by women.
“Meaningful change can happen,” said Gail Klintworth, champion of WomenRising2030 and business transformation director of the Business Commission. “First, we need to speak in a language that consistently highlights the positive impacts for individual companies when there is gender-balanced leadership. Second, we need to break out of the echo chamber."
Gender inequality creates an average global income loss of 13.5 per cent due to gaps in occupational choices and in labour force participation, according to figures from the Boston Consulting Group. The figure is the lowest in Europe at 10 per cent and highest in the Middle East and North Africa region at 27 per cent.
A July report by Deloitte found women are still largely under-represented on corporate boards, despite continued efforts to improve gender diversity. The study revealed that women hold just 15 per cent of board seats worldwide with the figure even lower in the GCC at with women holding no more than 2 per cent of seats in the GCC.
Ms Klintworth added: "Business needs to have more open dialogue with both men and women to challenge the status quo, and companies need to prioritise these conversations at every level.”
RESULTS
6.30pm: Meydan Sprint Group 2 US$175,000 1,000m
Winner: Ertijaal, Jim Crowley (jockey), Ali Rashid Al Raihe (trainer)
Q1 Suppose you had $100 in a savings account and the interest rate was 2 per cent per year. After five years, how much do you think you would have in the account if you left the money to grow? a) More than $102 b) Exactly $102 c) Less than $102 d) Do not know e) Refuse to answer
Q2 Imagine that the interest rate on your savings account was 1 per cent per year and inflation was 2 per cent per year. After one year, how much would you be able to buy with the money in this account? a) More than today b) Exactly the same as today c) Less than today d) Do not know e) Refuse to answer
Q4 Do you think that the following statement is true or false? “Buying a single company stock usually provides a safer return than a stock mutual fund.” a) True b) False d) Do not know e) Refuse to answer
The “Big Three” financial literacy questions were created by Professors Annamaria Lusardi of the George Washington School of Business and Olivia Mitchell, of the Wharton School of the University of Pennsylvania.
Answers:Q1 More than $102 (compound interest). Q2 Less than today (inflation). Q3 False (diversification).
Haemoglobin disorders explained
Thalassaemia is part of a family of genetic conditions affecting the blood known as haemoglobin disorders.
Haemoglobin is a substance in the red blood cells that carries oxygen and a lack of it triggers anemia, leaving patients very weak, short of breath and pale.
The most severe type of the condition is typically inherited when both parents are carriers. Those patients often require regular blood transfusions - about 450 of the UAE's 2,000 thalassaemia patients - though frequent transfusions can lead to too much iron in the body and heart and liver problems.
The condition mainly affects people of Mediterranean, South Asian, South-East Asian and Middle Eastern origin. Saudi Arabia recorded 45,892 cases of carriers between 2004 and 2014.
A World Health Organisation study estimated that globally there are at least 950,000 'new carrier couples' every year and annually there are 1.33 million at-risk pregnancies.
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Call of Duty: Black Ops 6
Developer: Treyarch, Raven Software Publisher: Activision Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S Rating: 3.5/5
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11 What time: Each day’s play is scheduled to start at 2pm UAE time. TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
RESULTS
6.30pm: Longines Conquest Classic Dh150,000 Maiden 1,200m.
Winner: Halima Hatun, Antonio Fresu (jockey), Ismail Mohammed (trainer).
7.05pm: Longines Gents La Grande Classique Dh155,000 Handicap 1,200m.
Winner: Moosir, Dane O’Neill, Doug Watson.
7.40pm: Longines Equestrian Collection Dh150,000 Maiden 1,600m.
Winner: Mazeed, Richard Mullen, Satish Seemar.
Best Player: Cristiano Ronaldo (Juventus) Best Coach: Gian Piero Gasperini (Atalanta) Best Referee: Gianluca Rocchi Best Goal: Fabio Quagliarella (Sampdoria vs Napoli) Best Team: Atalanta Best XI: Samir Handanovic (Inter); Aleksandar Kolarov (Roma), Giorgio Chiellini (Juventus), Kalidou Koulibaly (Napoli), Joao Cancelo (Juventus*); Miralem Pjanic (Juventus), Josip Ilicic (Atalanta), Nicolo Barella (Cagliari*); Fabio Quagliarella (Sampdoria), Cristiano Ronaldo (Juventus), Duvan Zapata (Atalanta) Serie B Best Young Player: Sandro Tonali (Brescia) Best Women’s Goal: Thaisa (Milan vs Juventus) Best Women’s Player: Manuela Giugliano (Milan) Best Women’s XI: Laura Giuliani (Milan); Alia Guagni (Fiorentina), Sara Gama (Juventus), Cecilia Salvai (Juventus), Elisa Bartoli (Roma); Aurora Galli (Juventus), Manuela Giugliano (Roma), Valentina Cernoia (Juventus); Valentina Giacinti (Milan), Ilaria Mauro (Fiorentina), Barbara Bonansea (Juventus)
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.