Category: Articles

Posted on by stellashi

See the Difference with Clarity. Make Change with Purpose. Close the Pay Gap

Inspirations and aspirations in delivering pay equity

In society today, advocating for pay equity is no longer simply a moral endeavour, it is a social imperative, a movement that recognizes that even after some 50 years of equal pay legislation the gender pay gap stubbornly refuses to go away.

There are, of course, key advocates who have dedicated years of work to promoting conversations about the need to do better, and the urgency to eradicate long-standing gender inequalities. Each success that they achieve builds momentum for change.

One of the most dedicated advocates is tennis champion Billie Jean King. Her activism led to equal pay for men and women in professional sports at the United States Open in 1973. Her impact is still being felt beyond the world of tennis. She has influenced and galvanized organizations, governments, and indeed whole nations, and as an ambassador for EDGE, she remains dedicated to the pursuit of pay equity.

But the speed at which the gender pay gap narrows is glacial, impacting the economic security of women, their families and communities. In response, governments have been finding ways to advance positive progress in this area with the use of legal instruments that effectively ‘force’ organizations to do more.

As more and more countries respond to the issues of gender and pay, the requirement for organizations to report on gender disparity grows.

The gender wage gap for full-time work at median earnings is 12.1% (2022). So, for every $1 a man earns, a woman earns 88 cents. This ranges from 31.2% in Korea and 17.0% in the United States to 1.4% in Costa Rica and 1.2% in Belgium.

Source: OECD

Gender pay gap and pay equity

Pay equity is the principle that employees should receive equal pay for work of equal value and equal pay legislation is aimed at eliminating employment discrimination and bias. While countries have long-held laws that prohibit discrimination in pay and benefits based on sex, these laws have not eliminated the long-standing injustice of the gender pay gap, which is also influenced by the types and seniority of employment roles that women occupy compared to men.

The gender pay gap gives a broader picture of representation that may be caused by complex and often interrelated issues – such as starting salaries, absences from the workplace due to motherhood and caring roles, lack of career progression, and inadequate mentorship. However, it is widely accepted that a lack of pay equity also contributes to the gender pay gap and diminishes the effects of any organizational efforts to narrow this gap.

Therefore, it is not surprising that national and local governments are increasing their efforts to implement legislative frameworks for organizations aimed at narrowing the gender pay gap.

For some countries, such as Australia, Spain and Thailand, there have been regulatory changes around parental leave, making provisions more generous, or ensuring they are gender-equal to encourage more fathers (and non-primary parents) to be involved in the early months of a child’s life and ease the ‘penalty’ of motherhood.

In other countries such as Brazil and Canada, pay transparency obligations have also been introduced – but with little consistency in approach; different mechanisms are being implemented across different countries, making comparisons (and progress) difficult to measure.

Public disclosure policies, which require employers to disclose salary or total compensation information to job candidates and current employers, making them more accountable and helping workers to make better-informed choices, are being used in certain countries; equal pay reporting requirements have been introduced in others. Again, it adds further complexity to an already complex issue.

EU Reporting requirements

The EU’s Corporate Sustainability Reporting Directive (CSRD), introduced in January 2023, aims to improve the transparency and comparability of sustainability reporting across Europe. It applies from 2025 to the financial year 2024 for large organizations (those employing 250 or more people). By 2029, the threshold will be further reduced to capture more organizations.

The CSRD also applies to certain non-EU organizations. Those listed on an EU-regulated market are included from 2025 for the financial year 2024.  From 2029, organizations with EU revenue exceeding €150 million, having a subsidiary office with over €40 million in revenue in the EU, or having a large or listed EU subsidiary, might also be included.

With its broadened scope, the CSRD will mandate almost 50,000 companies to share their ESG data, a significant increase from the previous Non-Financial Reporting Directive. Organizations should act promptly to prepare for the new reporting requirements and deadlines.

Reducing the burden of reporting

EDGE Certified organizations are required to undertake pay equity analysis as part of the certification process. The reports provide essential insights into compensation disparities, enabling them to identify and address any unexplained pay gaps. By taking steps to correct a pay gap the organization contributes to a more equitable workplace. It also reduces any potential legal risks associated with the gap, as well as fosters a culture of fairness and inclusivity for their employees.

The complexity of collecting and analyzing data required for pay equity analysis can be a constant challenge that requires long hours and often high costs. Organizations can significantly streamline their analysis and reporting requirements, however, with the help of a dedicated Pay Tool.

The new EDGE Empower® Pay Tool has been developed for EDGE Empower® users to help their organizations close their pay gap faster and reduce the burden of compliance. It has an intuitive design for effortless operation, and it can be customized for the organization. It means that variables like ‘Responsibility of the Role’ or ‘Type of Performed Function’ can be used to tailor the regression analysis and deliver more meaningful insight.

The browser-based Pay Tool works seamlessly across devices and can also be used offline. It offers speed of use with instant data loading and calculation to provide regression analysis in seconds. And, it has comprehensive data validity checks built in to ensure the accuracy of all inputs.

The EDGE Empower® Pay Tool has robust security and privacy to keep your data secure as it never leaves the user’s device. There are no third-party dependencies or APIs, and so therefore no risks of service disruptions.

Not only does the Pay Tool have a dedicated section for CSRD but it also simplifies compliance with a broad range of national and international laws, decrees and directives including the EU Pay Transparency Directive; Italy’s UNI/PdR 125:2022; the Spanish Royal Decree 901 and 902 / 2020; Swiss Legislation on Equal Pay; Brazil’s Pay Equity Law; US Equal Employment Opportunity Commission (EEOC); and Japan’s Act on Promotion of Women’s Participation and Advancement in the Workforce (APWPAW).

We’re here to support you on this important journey

Request your EDGE Empower® Pay Tool free trial here.

To find out more about the EDGE Empower® Pay Tool here.


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Posted on by stellashi

Stand Your Ground: Advancing DE&I Against Legal Intimidation


The benefits of diversity, equity, and inclusion (DE&I) in the workplace are undeniable. Countless studies from top business consulting firms and academic institutions show that companies committed to DE&I attract top talent, foster innovation, adapt to change more effectively, and are sustainably successful.

Despite the overwhelming evidence, DE&I initiatives in the U.S. face mounting legal challenges. A few lawsuits claim that these programs violate civil rights laws by imposing quotas and favoring diversity over merit. Critics argue that such practices could lead to hiring less qualified candidates.

EDGE Certified Foundation recently hosted a Q&A session with Chai Feldblum, a former U.S. Equal Employment Opportunity Commission (EEOC) Commissioner and Georgetown University law professor, to bring clarity to the attempt to muddle the legal waters in the U.S. As one of the key architects of the Americans with Disabilities Act of 1990, Chai provided valuable insights on how companies can implement effective DE&I initiatives while complying with evolving legal standards.

Chai’s central message is crystal clear: DE&I work is legal in the U.S. Indeed, she encourages business leaders to continue or start their DE&I initiatives, emphasizing that a well-structured strategy aligned with current laws mitigates legal risk. Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, and national origin, and the Age Discrimination in Employment Act of 1967 protects employees and job applicants who are 40 years of age or older from discrimination based on age in hiring, promotion, discharge, compensation, or terms, conditions, and privileges of employment embody aspects of the spirit of DE&I.

Here are some practical steps companies can take, based on our conversation with Chai:

  • Representation Goals: Instead of setting explicit numerical diversity targets, focus on inclusive recruiting practices to naturally increase diverse representation.
  • Equity and Inclusion: Ensure fair treatment by rigorously applying anti-discrimination laws and providing training on discrimination and harassment. Develop and abide by policies that foster a respectful workplace culture.
  • Data Collection and Analysis: Regularly assess your workforce to understand your diversity in the workplace. Chai underscored that no law prevents companies from knowing themselves; this can help ensure compliance with anti-discrimination laws and create a more inclusive environment.

Despite a legal environment that is being by clouded by DE&I detractors, Chai stressed that DE&I initiatives can and should continue to thrive within the boundaries of U.S. law. By being strategic, data-driven, and compliant, employers can cultivate a diverse, equitable, and inclusive workplace that benefits both their organizations and society.

For more insights on legal DE&I strategies and practical advice, watch here the EDGEtalks Webinar with Chai Feldblum, “Upholding DE&I Programs and Practices in the U.S.”


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Posted on by albertopasino

A 5-Step Guide to Closing the Gender Pay Gap

Unlock the path to pay equity: our practical guide developed in partnership with Billie Jean King.

As regulations on pay transparency tighten and employee expectations rise, organizations that embrace pay equity and transparency will thrive. With more than one-fourth of the US labour force already covered by salary transparency legislation, and recent strengthened requirements in the EU, the need for action is clear.

Our guide, “A 5-step Guide to Closing the Gender Pay Gap,” is your roadmap to drive real change. Backed by reliable sources and packed with insights and actionable steps, this guide empowers organizations to implement impactful actions that eliminate pay disparities and earn recognition from stakeholders wherever they are in DE&I journey.

In this guide, you will discover a roadmap to close the workplace pay gap in your organization and its milestones:

  • Establish an authentic policy on equal pay
  • Measure and address the unexplained gender pay gap
  • Embrace an intersectional approach to understand how various criteria intersect in pay discrepancies
  • Develop a clear remediation strategy to build a gender-balanced talent pipeline
  • Maintain transparent communication to foster conversations around pay equity
  • Empower line managers to facilitate constructive discussions on pay equity.

The time for change is now! 

Click ‘Full guide’ to download your copy of our guide to close the gap

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A 5-Step Guide to Closing the Gender Pay Gap

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Posted on by stellashi

Looking Beyond the Rainbow

Is it time to broaden the conversation during Pride month and beyond to allow for meaningful action which acknowledges that people can identify with many marginalized groups and not just one?

Pride month has become a universal invitation taken up by organizations across many parts of the world to use rainbows and other inclusive gestures in efforts to promote positive sentiment about their brand, and to suggest that they are inclusive employers.

Unfortunately, issuing rainbow lanyards to employees and littering social channels with celebratory posts require little – to no – substantive evidence that the business is in fact as inclusive as it makes out. The result, especially for those colleagues who are lesbian, gay, bisexual, transgender, questioning, queer, intersex, asexual, pansexual and their allies (LGBTQIA+), is that the corporate image which is being built by the marketing machine conflicts with their real-life experience of the brand.

There is still much work to be done to attract, engage and retain talent – and to build a deeper trust with employees so that they have the confidence to bring their authentic self to work every day. And there is an ever growing need to do so. The number of people in the LGBTQIA+ communities is growing and yet these people still face challenges in expressing their whole selves in the workplace.

In the US, for example, there are nearly 14 million adults in the LGBTQ+ (Lesbian, Gay, Bisexual, Transgender, Queer) community and it is growing rapidly.[1] This growth is attributed to the members of Generation Z (those born between 1997 and 2012) being more than six times more likely than Gen X to identify as LGBTQ+.[2] For those leaders with an eye on the future, the importance of making real progress will not be lost: Gen Z is projected to account for 30% of the civilian workforce by 2030.[3]

Many members of the LGBTQIA+ communities who can pass as straight and/or cisgender, allowing them to make the choice as to whether or not they share their identity to co-workers and employers, are exercising this choice. In fact, according to research presented by Deloitte, less than half of the 5,474 LGBT+ people surveyed from workplaces in various sectors across 13 countries, said that they feel comfortable being out with all of their colleagues. Another one-third said that they are only comfortable being out with select colleagues.[4]

The importance of bringing your whole self to work

While LGBTQ+ rights have advanced dramatically in the last 20 years, boosting diversity in the workplace, the focus has been on equitable policies and creating employee resource groups. But the significant proportion of workers who do not feel able to bring their full selves to work shows that despite years of work in this space, efforts are not always resulting in any real world change. Progress is also not happening quickly enough: organizational cultures are not keeping pace with the evolving makeup of the LGBTQIA+ workforce.

Employers need to take a broader view and do more to understand the complexity that lies within the LGBTQIA+ workforce to support and empower them.

Individuals are not just one characteristic – people can identify with many marginalized groups. It is critical, therefore, for DE&I strategies to acknowledge multiple personal attributes, including factors like race, age, religion, and immigration status if they are to create truly inclusive working environments.

Research undertaken for EY’s US 2024 LGBTQ+ Workplace Barometer – which surveyed 500 LGBTQ+ full-time workers in the US who hold corporate roles at mid- and large-size organizations – uncovered that racially and ethnically diverse (R&ED) workers within the LGBTQ+ community are 1.7 times more likely to have experienced harassment at a previous employer, compared to White LGBTQ+ employees. Similarly, R&ED LGBTQ+ employees are 2.3 times more likely than their White LGBTQ+ peers to experience ‘microaggressions’ in the workplace.[5]

Creating a more welcoming and inclusive environment that accounts for intersectionality is important for engaging with and supporting LGBTQIA+ colleagues, but also for attracting and retaining talent. This is evidenced in the Deloitte study which revealed that one-third of all respondents are actively looking to change employer to one that is more directly inclusive, but this is even higher for ethnic minority respondents, where more than half are currently looking for a new role.[6]

Pride month and other such celebrations of diversity are important, but not as important as creating a culture of inclusivity that is permanent, and engenders a safer and more empowering workplace. When we take into consideration the changing make-up of future talent, and future customers and stakeholders, it makes good business sense to take an intersectional approach that engages with all LGBTQIA+ colleagues to create genuine trust and value for long-term success.

We’re here to support you on this important journey

Book your EDGE Empower® introductory meeting here.


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Posted on by stellashi

Managing in a Time of Angst

Chief Executive Officers (CEOs) today are navigating an era of significant anxiety, facing pressure from various stakeholders to implement meaningful and sustainable diversity, equity, and inclusion (DEI) initiatives. Despite the strong business case for DEI, many companies have faltered by failing to integrate DEI into their core value creation processes, executing inauthentic programs, and neglecting DEI metrics.

Initially, many companies embarked on their DEI journeys in response to civil unrest and a demand for change. However, the lack of strategic integration meant these efforts often fell short. Effective DEI initiatives can lead to enhanced innovation, better decision-making, and improved business resilience. For companies to truly benefit from DEI, it must be a prioritized, intentional, and measured effort across all organizational levels.

CEOs can take several steps to demonstrate DEI as a strategic priority. Forming a diverse DEI committee to guide strategy and track progress, setting clear representation goals integrated into hiring and promotion practices, fostering open dialogue about pay equity, upholding strict policies against harassment and discrimination, and incorporating DEI metrics into performance reviews are all critical actions. These measures can help embed DEI into the organizational culture and ensure lasting impact.

CEOs committed to fostering diverse, inclusive, and equitable workplaces face significant challenges but also have the potential to lead their companies toward sustainable growth and resilience.

Gain deeper insights

Read EDGE’s Founder Aniela Unguresan’s Forbes article Managing in a Time of Angst.

Wherever you are in your DEI journey, whether at the very beginning or further along, EDGE Empower® helps accelerate your progress, and through EDGE Certification® visibly prove it – applying the same discipline and rigour that you would to other business-critical missions.

We’re here to support you on this important journey

Learn more by booking an introductory meeting today.

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Posted on by stellashi

Wake Up, Be Woke and Lead the Change: Overcoming DEI Opposition

The United States is experiencing a significant culture war, characterized by deep ideological divisions over various social, political, and cultural issues. Central to this conflict is the topic of diversity, equity, and inclusion (DEI), which has become a flashpoint, especially in the business world. The term “woke” symbolizes the cultural divide, and supporting DEI initiatives has become crucial for business leaders.

Aniela Unguresan, an economist and company leader, emphasizes the importance of DEI from both analytical and empathetic perspectives. She highlights that the benefits of DEI, such as boosting innovation, retaining talent, and improving the bottom line, are well-documented. However, resistance to DEI persists due to fear of change, lack of understanding, bias, fear of losing power, and lack of measurable impact.

To overcome DEI opposition, organizations should stick to objective facts, promote education and awareness, encourage open communication, and establish clear metrics and accountability. By addressing misconceptions and demonstrating the positive outcomes of DEI, businesses can create a more inclusive and equitable environment.

Despite the challenges posed by the culture war, business leaders have the opportunity to drive positive change. Millennials and Generation Z, who make up a significant portion of the workforce, strongly support DEI initiatives, making it imperative for leaders to embrace and lead these changes.

Gain deeper insights

Read EDGE’s Founder Aniela Unguresan’s Forbes article: Wake Up, Be Woke and Lead the Change: Overcoming DE&I Opposition.

Wherever you are in your DEI journey, whether at the very beginning or further along, EDGE Empower® helps accelerate your progress, and through EDGE Certification® visibly prove it – applying the same discipline and rigour that you would to other business-critical missions.

We’re here to support you on this important journey.

Learn more by booking an introductory meeting today.

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Posted on by stellashi

How Companies Can Adapt to Europe’s Evolving DEI Policies

In a rapidly evolving global society, diversity, equity, and inclusion (DEI) have become critical values shaping modern businesses. The European Union (EU) has positioned DEI as a pillar for social and economic progress through targeted regulations such as the Equality and Diversity Law and the Corporate Sustainability Reporting Directive. These laws aim to address historical inequalities and promote transparency in social performance.

For foreign businesses operating in Europe, adapting to these changes involves a comprehensive approach. Organizations must view DEI investments as long-term assets, align their organizational values with EU directives, and empower employees through education and engagement. This holistic approach ensures that DEI initiatives become an integral part of the corporate culture, fostering resilience and adaptability in a diverse global market.

Gain deeper insights

Read EDGE’s Founder Aniela Unguresan’s Forbes article How Companies Can Adapt To Europe’s Evolving DEI Policies.

Wherever you are in your DEI journey, whether at the very beginning or further along, EDGE Empower® helps accelerate your progress, and through EDGE Certification® visibly prove it – applying the same discipline and rigour that you would to other business-critical missions.

We’re here to support you on this important journey.

Learn more by booking an introductory meeting today.

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Book a demo

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Book a demo
Posted on by stellashi

Walking the Talk in DE&I – a conversation with Stuart Maxwell

Aniela Unguresan

Founder, EDGE

Stuart Maxwell

VP, Leadership, Learning and Talent, Kerry

Stuart Maxwell has been a champion of Diversity, Equity and Inclusion (DE&I) from the outset, and a supporter of EDGE Certification® as an effective instrument to drive progress in this area.

Embedding DE&I in a company’s culture, performance management, leadership development and recruitment strategies, he says, can be a game changer: “It’s one of the big lessons I’ve learned over the years and would advocate for anyone embarking on a DE&I journey,” he explains. “If DE&I is kept separate from everything else, then no matter how loud the voice, you are not going to reach everybody you need to reach.”

Stuart believes in DE&I for the simple reason that “it is absolutely the right thing to do.” It is useful, however, that the desire ‘to do the right thing’ is also supported by hard evidence that it improves business performance: “It’s a clear differentiator for a business seeking to attract, engage and retain talent,” Stuart continues.

Matching DE&I expectations with reality

“Gen Y and Gen Z employees will often have multiple offers of jobs on the table and will decide which company to join based on what you are saying around sustainability and DE&I. And when they join a business, then the culture they experience once they’ve walked through the front door must match what they saw when looking through the shop window.”

A report published in 2023 by the management consultancy McKinsey & Company showed that the top quartile companies in terms of DE&I performance had a 39% greater likelihood of financial outperformance compared to their bottom-quartile peers: “It is quantifiable that companies with more diverse leadership teams are more successful,” Stuart says, “and they are also more innovative.

“Diverse companies are able to access the full talent pool, and that is increasingly important in a world where the market for talent is extremely competitive. It’s also important to run regular employee engagement surveys,” he continues.

“We knew that we were heading in the right direction when in an all-company engagement survey with an 80% response rate, 90% of employees responded that DE&I was having a positive impact on their employee experience. Reaching all employees is a key goal for DE&I practitioners.”

DE&I, Stuart says, is also becoming increasingly important to other stakeholders: “It’s a big issue now for Boards and investors, with much greater focus on representation and questions around how businesses are advancing their DE&I agenda.”

Validating progress with an independent benchmark

To validate progress in your DE&I journey, Stuart stresses the importance of an independent benchmark: “You shouldn’t be interested in paying to collect a little badge to put on your website,” he smiles. “You want to be able to benchmark yourselves against your peers with real, meaningful insight and an action plan for the future. That’s why I have always been an advocate of EDGE Certification®. EDGE sets the bar high and gives you clear feedback on what you will need to do to become best in class.”

Being part of the EDGE Certification® process supports organizations seeking to be included and improve their score ratings such as DJSI and Equileap. In both examples, EDGE Certification® contributes meaningfully to an organization’s overall score. As Diana van Maasdijk, Equileap’s co-founder says: ‘EDGE Certification® is a rigorous, independent assessment and a universally accepted methodology’.

But again, being included in such respected Indices is not the end of the journey: “It doesn’t mean you’re there but it’s nice recognition and it’s valued by your employees, the Board and your investors,” he adds.

Stuart is alive to the fact that DE&I is being politicized in some quarters, causing some organizations to reconsider their priorities.  He advises that firms should continue their journeys as it is even more important in such environments that all employees feel that they are supported in bringing their whole selves to work. It can also be a clear differentiator in the talent market. Again, he stresses that senior buy-in is essential: “The CEO sets the expectation, and the executives line up behind it,” he adds.

Understanding the real meaning of diversity

Stuart believes that breaking down internal barriers is a big step and removing invisible structures and mindsets that can get in the way of progress. It leads to the acceleration of female talent, not just through external recruitment, but also by promoting from within: “Of course, there are some people in an organization who will always say there is a glass ceiling, but I’d like to think that even where there are some ceilings left, you can make some fairly big cracks in them,” he jokes.

So what advice would Stuart give to his peers currently grappling with the DE&I conundrum? “As I mentioned earlier, don’t keep it as a separate initiative, it has to be part of your culture and lead your core behaviours, embedded in everything you do.”

He also says to trust the data: “Some of what you will do will be spreadsheet-based, and you need to analyze the data that is presented to you.

“If you have set an aspirational target for your organization to achieve gender parity in your senior leadership that doesn’t mean that every single business unit or division has to reach a gender-balanced representation. Some may be higher and some lower, and it has to be achieved in a way that is sustainable for your organization. You also need to explore what those roles are, and not just a Head of HR or General Counsel. It’s important to target P&L roles, for example, as a better benchmark for achieving ‘true’ diversity.

“The point is, understand your numbers and the story behind those numbers. A 30% representation in one part of the business or in certain roles could be better than 40% in another.”

Stuart also warns about ‘fixing’ quotas simply through recruitment, a point he touched upon earlier: “Insisting on a diverse candidate slate for new jobs is great, but who are you promoting and who are you retaining? That should be an important area of focus. Everyone who comes into your business wants to be judged on their skills and contribution and feel that their contribution is recognized. They also want to come to work and express their true selves. If they can do that, then business success follows.”

Listening is also important: “You do need to keep listening and communicating if something isn’t landing,” he continues. “Sometimes what you say may not be resonating with a particular audience, and so you need to challenge why that might be and make a judgement call.”

Stuart believes that people can nearly always do more than you think they can, and more than they think they can themselves. Part of his job has always been about getting the best out of everyone; it’s a personal mission: “I try and help pull away the barriers, break the ceilings, and instil confidence in people such that they can fulfil their full potential. It’s that mindset that permeates all of my decisions.

“Walk the talk, because if you’re advocating what people should be doing but not doing it yourself, then it invalidates the advice and guidance you are giving. You might be the best HR professional in the world, but if you’re not an inclusive leader yourself, you won’t achieve what you want to achieve. Look in the mirror.

“If you’ve got great people doing great things, you’ll be a successful company.”

We’re here to support you on this important journey of addressing gender inequality in the workplace

Request your EDGE Empower demo here.


Download PDF

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EDGE Move Certification
Learn how Standard Chartered Sri Lanka used EDGE Empower to become the first organization in the country to achieve the EDGE Move Certification.

Book a demo

Do you have questions about our product or pricing?

Simply fill out the form below and one of our colleagues will be in touch shortly.

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Posted on by stellashi

Commitment to DE&I Requires ‘Tangible Proofs’ of Progress

Woman

Author: Aniela Unguresan

Founder, EDGE

During the pandemic, there was a noticeable shift in attitudes towards Diversity, Equity and Inclusion (DE&I) linked to an organization’s commitment.

It was an unprecedented moment where you could sense that all the most important stakeholder groups – including existing and potential employees, customers, business partners and investors – were demanding that their organization, regardless of size or location, show commitment to the values of DE&I.

While it is true, as I have written previously, that DE&I is in danger of becoming irreversibly politicized, and that recent political conversations relating to the topic have undoubtedly had a negative impact, today I am sensing that the tide is once again shifting in our favour.

Organizations and their stakeholders are becoming more enthusiastic about demonstrating their commitment to the values and benefits that DE&I deliver. They want to see organizations who they work for, or are invested in, visibly, credibly and genuinely embrace an equitable and inclusive workplace.

This is especially true of ‘new’ talent; Gen Zs are looking for ‘tangible proofs’ of commitment, action and results and need to be assured that their potential employer is an employer where their talent will be allowed to flourish, and their contribution and skills appreciated.

In the news recently was a report from the European Union’s securities watchdog (the ESMA) that mandated that a fund that has any environmental, social or governance (ESG) related words in its name must have at least 80% of assets that meet ESG objectives in accordance with the binding elements of its stated investment strategy.

“The objective of the guidelines is to ensure that investors are protected against unsubstantiated or exaggerated sustainability claims in fund names, and to provide asset managers with clear and measurable criteria to assess their ability to use ESG or sustainability-related terms in fund names,” ESMA said in a statement.

In simple terms, it is a protection against greenwashing, and for both investors and market regulators, ESG remains an important focus. DE&I is of course an important component of the ‘S’ within ESG. Now there is a movement where, because of the increasing interest of all the stakeholders, there is an increasing need to go from self-reporting towards ‘limited assurance’ or even ‘independently verified’ claims on where a company stands on DE&I.

I think that now, more than any other time since the pandemic, is the moment for companies to restate why they are committed, what they are doing to honour their commitment, and how they can  prove that their commitment is being translated into actions that are making a meaningful difference.

This return to a DE&I mindset is being driven by the younger generation, by market regulators and by sustainability minded investors. In looking for commitment, they are also looking for organizations whose claims can be substantiated, which is where certain voluntary market-based instruments – such as EDGE Certification® – can give visible proof of credible progress. They are also the instruments that prove to be the most effective at the intersection between business and society because they bring objective measurements and standards and independent verification in areas that are not traditionally seen as very ‘special’.

My mentor and colleague Simona Scarpaleggia, CEO of Ikea Switzerland from 2010 until 2019 and independent Board Member of a number of leading publicly listed companies, sums up the current trend succinctly: ‘to demonstrate commitment you have to mean it, you have to do it, you have to measure it and then you have to talk about it!’

With the business case for DE&I long-since proven, organizations needed to provide tangible, visible proofs that they not only believe in DE&I, but that they were making progress in closing the equity gap.

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