Remember, this is all about science. No, stop rolling your eyes, I saw that. Science!
We need more diverse boardrooms to address the climate crisis
climate change joke
In recent years, national governments have strengthened their commitment to addressing the climate crisis.
The UK has said it will reach net-zero emissions by 2050. President Xi Jinping has pledged China will do the same by 2060. And Joe Biden is expected to prioritize climate goals, having already pledged to rejoin the Paris Agreement on climate change.
Countries will be looking at their supply chains to see where emissions can be reduced. International co-operation will be stepped up, too, especially with flagship events such as COP26 happening later this year. But while national governments increase efforts to combat climate change, the private sector has its part to play too.
It could start by improving its gender diversity.
In 2021, leading on corporate diversity is no longer a good press exercise, but something which can boost both financial performance and environmental impact.
Proof?
The link between gender diversity and carbon footprint may not be obvious. After all, while companies around the world have been switched on to the fact that greater diversity equals better performance for many years now, that performance has usually been viewed through a financial lens alone.
Perhaps understandably so. A 2019 Credit Suisse study found that companies with a high percentage of women on the board, and within management, outperformed their less diverse counterparts. It makes sense that a diverse and inclusive team is more competitive in today’s globalized economy.
So, one study. And, it may be correct. There needs to be more data, especially going beyond a study that starts out with an editorial. Doesn’t sound rather unbiased. And, there’s nothing wrong with women and different people on boards, as long as they’ve earned it. Just like a man has to earn it (unless you’re Joe Biden’s son).
In fact, diversity across a business has wider implications, including – most significantly – for that business’ carbon footprint. Recently, Arabesque looked at the data from more than 2000 companies around the world, and found that as diversity increased, so did corporate transparency, which included how likely it was that a company would make its volume of greenhouse gas emissions public.
Companies that are doing better on managing and reducing their greenhouse gas emissions are more likely to disclose adequately, since they will gain from that disclosure.
Sounds like these companies are more interested in Virtue Signaling than their core missions.
To truly achieve lasting change, we will need to move towards a place where the corporate world sets high standards for itself with respect to diversity and makes sure those standards are upheld. This can take the shape of external pressure. Goldman Sachs will no longer underwrite IPOs for companies with fewer than two board members from diverse backgrounds, and Nasdaq has proposed requiring that a business has at least one female director to list on their exchanges.
And you end up with token people in positions with no actual power, just Social Justice Warrioring. Treating people like tokens. This is not about science. And, let’s face it, this is actually rather patronizing, thinking that women can’t do it themselves and have to be given positions.
Read: In Order To Solve The Climate Crisis (scam) We Need More Diverse Boardrooms Or Something »