ESG Risk Assessments & Insights analysed the Female board representation in listed manufacturing companies to gauge the diversity quotient in manufacturing sector.
This analysis, which was conducted on data from 2021-2023 reveals that:
1. The number of companies with only 1 female member will likely decrease and growth will primarily occur in companies with multiple female board members, indicating slow but steady diversification.
2. Based on the increase in female representation from 17.2% in 2021 to 18.5% in 2023, and assuming a similar growth rate of ~1% every two years: we expect the representation to approach around 20% by 2025.
(Refer chart 1)
Some initiatives that companies can take to increase female representation in leadership roles beyond the boardroom:
1. Mentorship and training initiatives focused on growing female leadership across all levels.
2. Developing targeted leadership programmes for high-potential female employees.
3. Establishing internal policies to ensure at least 25-30% of new board appointees are female by 2028.
While marginal progress is being made, there's still a long way to go. Building a strong pipeline of future female leaders from the ground up is essential to drive meaningful, lasting change in boardroom diversity.
Sankar Chakraborti
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