Diversity, Equity and Inclusion (DEI) is no longer an uncommon phrase in today’s economy. An integral part of the Triple Bottom Line: People, Planet and Profit, the benefits of DEI can be felt across a company’s operations. Businesses that are actively investing in DEI are not only seeing improvements to their human capital, they are also witnessing growth in their financial capital as well.
McKinsey’s study in 2019 found that the most gender and ethnic diverse organizations are 25% and 36% (respectively) more likely to have above average profits than their least diverse peers. Other studies indicate that diversity can reduce company risk by up to 30% and improve the quality of decision making by 20%. The increasing recognition and value of DEI in society and businesses has also been flagged by investors and companies are now facing increased pressure to improve their DEI performance. For example, Nasdaq, the world’s second largest stock exchange aims to change their regulations requiring majority of its listed companies to increase transparency in their reporting and have at least one woman and one person from a minority or LGBTQ community in their board of directors.
Getting started: Create a DEI policy
The first step is to create a policy to define, integrate and strengthen DEI within your organization. Using indicators and a monitoring system, your company can identify its current status, develop goals and corresponding Key Performance Indicators (KPIs), and start reporting and disclosing your DEI performance. For tips on developing DEI policies and initiatives we suggest visiting the Anti-Racism Resources page hosted by B Corp Certification, or contact us for more details.
Towards reporting DEI: A glimpse from leading guidelines and standards
Since they are recognized and requested by investors, leading ESG and sustainability reporting guidelines have taken strides to develop indicators to help companies increase transparency and report on their DEI. The table below lists the types of DEI indicators included in key ESG and sustainability guidelines used across Canada.
Is your company ready to start integrating and reporting on DEI?
If you and your organization are interested in learning more about DEI and reporting tools, reach out to us at https://changinghabits.solutions/contact-us/
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