Stockholm (NordSIP) – Refinitiv announced the constituent member companies included in its Diversity & Inclusion Index for 2019. Launched in 2016, the D&I Index ranks the top 100 publicly traded companies globally with the most diverse and inclusive workplaces. The assessment is based on 24 metrics across four key categories: Diversity, Inclusion, People Development and News Controversies.
The Index is calculated by weighing each metric based on importance in the market and how each company compares with its peers. The D&I Index measures relative performance against multiple factors that define diverse and inclusive workplaces. The index ratings are informed by Refinitiv’s ESG data, designed to transparently and objectively measure the relative performance of more than 7,000 companies representing 70% of global market cap across over 400 ESG data points, and provide clients with critical and differentiated insight. The D&I Index is available on Morgan Stanley, as are the underlying diversity and inclusion metrics, which can be used to help financial professionals evaluate companies for long-term opportunities and risks in their investments, as well as empower diversity-lens investing strategies.
“Congratulations to the 2019 D&I Index Top 100 most diverse and inclusive organisations globally. We are proud that our D&I index is being used as a guide to help firms across the globe create a workforce of diverse teams. We are equally proud that the D&I Index continues to serve as a key driver for investors and analysts seeking to identify the companies that are getting this right, and helping them to make investment decisions that align with their values and the bottom line,” said Debra Walton, Chief Revenue Officer at Refinitiv. “The D&I Index also reflects Refinitiv’s own commitment to diversity and inclusion, data points which we track rigorously about our own company and which continue to drive our talent strategy to reach a minimum of 40% female representation in senior leadership roles globally, whilst continuing to support and promote an inclusive workplace that embraces diversity of every kind.”
The pharmaceutical industry accounts for 13% of the index, followed by banking, investment services & insurance (11%), telecommunications services (9%) and personal and household products & services (7%). A quarter of the top 100 companies come from the United States, which is the single largest source of diversity and inclusiveness, according to Refinitiv. UK companies account for 10% of the list, followed by Australia’s 9%. Accenture, Diageo and RBC were the top 3 ranking companies, followed by Brazil’s Natura Cosmeticos and BlackRock. Evonik Industries, Citigroup and Peugeot ranked at the bottom of the list.
“Our Diversity and Inclusion Index, now in its fourth year, recognises the companies who are leading the way in embedding diversity and inclusion into their business strategy and practices,” said Elena Philipova, global head of ESG at Refinitiv. “As ESG principles become commonplace around the world, many executives and investment professionals are looking at the implementation of ESG fundamentals, D&I being part of it — not as a ‘nice to have’, but as an essential lens for investment and strategy decision-making. Refinitiv remains fully committed to using our data assets, expertise and influence to champion the importance of diversity and inclusion in the workplace – including our own.”
“Diversity as a critical pillar of good governance is being increasingly used to manage investment selection,” commented Larry Tabb, founder & research chairman at TABB Group. “Those companies that have strong ESG aspects to their business tend to attract and retain employees and clients longer, which reduces turnover, costs and is very beneficial to the bottom line.”
At the end of September 2019, BlackRock partnered with Thomson Reuters to launch the first ETF based on the D&I Index. According to Refinitiv, the Matterhorn Group at Morgan Stanley was the first advisory team to use the D&I Index as an investment tool.