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How did the business case for gender balance DE&I evolved over the last 18 months?

Renata Dourado: The advances we made were possible thanks to the strong commitment of our leadership and the acceleration of the Diversity and Inclusion theme throughout the Company. In recent years, with an area and management dedicated to the topic, we have invested in inclusive processes and gender equality in Recruitment, Development, Retention and Succession. For example, some of our goals here are to ensure that women are sought after in key trainings, mentoring opportunities and in succession plans for key positions. Today, gender equity is already a reality at L’Oréal Brazil – and the EDGE Lead certificate attests this.

EDGE Certification brings visibility and credibility to the change happening inside the organization. At the same time, it creates the premises for diverse talent to thrive at work. Tell us some stories about how your employees benefit from the EDGE Certification journey of your organization.

Renata Dourado: Without a doubt, the steps we took to promote gender equity helped us to promote a more innovative and diverse environment. And this is reflected in our teams. In 2020, for example, women represented 53% of leadership positions and 64% of the workforce in Brazil. With this efforts, it was possible to achieve equity even in areas that are predominantly male in the market, such as Finance, Operations and Research & Innovation. In addition, another interesting indicator is about the sense of belonging and acceptance of our employees. In our internal climate survey, 94% of our employees say they are proud to work at L’Oréal, and 93% affirm they are treated fairly, regardless of their age, marital status, gender, disability, race, religion or sexual orientation. .

What do you think workplace gender balance, diversity and inclusion means to the next generation ?

Renata Dourado: We are very proud of this achievement, as it recognizes our commitment to promoting gender equality in the workplace with effective policies and practices. We want to show the market and our stakeholders that, more than possible, it is necessary to invest in plurality to be innovative. It is this diversity that makes us closer to our consumers. There is no other way for us to advance as a society without transforming organizations into inclusive cultures.

What’s the place of gender balance, diversity and inclusion in your broader sustainability agenda?

Renata Dourado: L’Oréal’s sustainable development is a long-standing commitment. As the world leader in beauty, we know that everything we do has the potential to have a significant impact. At L’Oréal, our purpose is to create the beauty that moves the world, and our business is driven by the diversity of beauties of our consumers. Therefore, diversity and inclusion are in our DNA and are strategic for our sustainable growth.

We have a very clear global strategy for diversity, focused on three priorities: the first, oriented towards people, seeking the best talent and creating an inclusive environment for employees; the second, focused on the consumer, so that this diversity is present in our product portfolio and in our communications; and the third, social, supporting causes and communities. This last point is directly related to sustainability, which is also a strategic priority for the Company. L’Oréal Brazil is a reference in social protagonism for the Group, with innovative projects for women’s empowerment and social inclusion of vulnerable communities and indigenous.

What are your personal commitments to advance gender balance, diversity and inclusion inside and outside your organization?

Renata Dourado: We are talking about an issue of cultural transformation. Therefore, challenging. It is necessary to unite everyone towards the same goal, which requires the constant breaking of paradigms, stereotypes and unconscious biases. Our goal is to build a truly diverse and equal opportunity organization – and society – by ensuring that everyone is committed to promoting a more inclusive work environment and world. It is necessary, for example, to promote powerful and difficult conversations between leaders. The themes are sensitive and complex, but talking about them helps to deconstruct taboos and encourages the creation of solutions together. We also need to build a clear vision to be shared by the entire organization and invest time, resources and energy into the topic, working towards clear goals and objectives.

What do you consider the most important business benefit of your organization being EDGE Certified?

Renata Dourado: Diversity generates real competitive advantages. It is proven that a diverse company has better economic results. A corporate environment where professionals have the same education, for example, does not create space for innovation. With a diverse team, we are able to create innovative processes and products. Inclusion is a powerful performance handle. And the EDGE Lead certification shows the market, our stakeholders and consumers that we are leaders in gender equality in the corporate environment. At L’Oréal, we invite our employees to draw inspiration from one another, blending ideas and transforming existing standards to create the Beauty of the future that is more diverse and inclusive.

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How did the business case for gender balance DE&I evolved over the last 18 months?

Michelle Phooko: In 2021 EBRD set its next medium-term strategy, which defined three crosscutting strategic themes, of which equality of opportunity and gender mainstreaming is one. Making this commitment as an organisation means that we must ensure we are also progressing and upholding our commitments to gender equality from an internal perspective. Progressing our EDGE action plan and achieving the next ‘Move’ level of certification is one way that we have been able to demonstrate the work we’ve been doing on this front.

EDGE Certification brings visibility and credibility to the change happening inside the organization. At the same time, it creates the premises for diverse talent to thrive at work. Tell us some stories about how your employees benefit from the EDGE Certification journey of your organization.

Michelle Phooko: We hear from staff that they appreciate the Bank’s commitment to such a thorough certification process which communicates transparently on our data, as well as on our policies and practices. This transparency, combined with a public commitment to actionable improvements, allows us to measure tangible progress and hold ourselves accountable to our staff. We also know that our staff value the independent audit, as it ensures a fair analysis and outcome without any potential bias.

What do you think workplace gender balance, diversity and inclusion means to the next generation (e.g., of leaders / customers / investors)?

Michelle Phooko: The next generation will want to see tangible diversity and inclusion progress within the workplace. For the EBRD, this comes back to the Bank’s mission and strategic priority, as we know that without equality of opportunity, pools of talent will remain untapped and unproductive.  It is vital that we work hard to ensure we practice what we preach, and that we are transparent and honest in order to attract future talent and remain an attractive employer.

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In 2021 Banco BHD León achieved EDGE Assess certification, the first EDGE certification level, demonstrating its commitment towards gender equity in the workplace. It became the first organization in the Dominican Republic, and indeed the first private company in the Caribbean, to undergo the rigorous third-party assessment required to obtain EDGE Certification.

Headquartered in Santo Domingo, Banco BHD León has more than 4,000 employees and serves over one million customers. Its certification was acquired with the advice of IDB Invest, in the context of a strategic alliance between the two entities to support small to medium-sized enterprises (SMEs) owned and led by Dominican women. But its commitment and ambition for gender equity spreads further than this. Banco BHD León takes seriously its position to support not only its employees by creating a more gender-balanced workplace, but also the development of Dominican women and contributing to a better country with improved gender equity.

Steven Puig is CEO of Banco BHD León and Martha Peralta is Vice President Senior Talent Management at Banco BHD León, and both are proud of the work they are doing both inside and outside of their organization to create positive change.

How did the business case for gender balance DE&I evolved over the last 18 months?

Martha Peralta: Since 2015, with the creation of our BHD León Women’s Gender Strategy, our entity has focused on developing important internal changes so that gender balance, diversity, equity and inclusion are part of our culture, and our work environment. For example, we were the first financial entity in the Dominican Republic to increase paternity leave, and we have also created various programs to train leaders in terms of inclusion. In 2020, in response to the COVID-19 pandemic, we strengthened initiatives to promote the psychological health of our staff and strengthened our inclusion project for employees with special needs, among other initiatives. In 2021 we continued to focus on strengthening these proposals, making banking increasingly more responsible, more innovative and closer to our employees.

Where does gender balance, diversity and inclusion fit within your broader sustainability agenda?

Steven Puig: The sustainability strategy we execute at Banco BHD León is based on the implementation of the Sustainable Development Goals (SDGs) and focuses on carrying out social, environmental and economic initiatives. Gender balance, diversity and inclusion are at the top of our sustainability agenda. For example, since 2015 we have implemented a gender strategy that is exclusively dedicated to guaranteeing the creation and execution of initiatives that work in favor of gender balance, promoting gender equity, equal labor practices and developing different programs that support the role of women in the social, economic and environmental sectors. We are currently working on another strategy that has already made significant progress, which includes training and capacity-building in different areas regarding the management of diversity and inclusion. Gender balance, diversity and inclusion are part of our business management.

What are your personal commitments to advance gender balance, diversity and inclusion inside and outside your organization?

Steven Puig: More than a commitment, it is a responsibility that both the Banco BHD León team and I have assumed as an organization and as individuals to contribute to the positive transformation of society, making a sustainable world that provides opportunities for all people. We carry this corporate responsibility at all levels of the entity, and it is part of the DNA of our strategy.

EDGE Certification brings visibility and credibility to the change happening inside the organization. Tell us some stories about how your employees benefit from the EDGE Certification journey of your organization.

Martha Peralta: We are very pleased and proud to be the first Dominican financial institution to obtain an EDGE Assess certification. This makes us distinctive and gives us a point of difference.  It adds value to our image and evidences what we do for our staff. But above all, it challenges us to continue strengthening our skills to continue advancing on issues of gender diversity, while being a benchmark company for others in our country to aspire to. We intend to continue this commitment to responsibly respond to the needs of gender equity in the work environment.

What do you consider the most important business benefits of your organization being EDGE Certified?

Steven Puig: The EDGE Assess certification validates our work practices and guides us to continue with our purpose of achieving gender balance, gender diversity and gender inclusion. It challenges us to continue working to guarantee an organizational culture that is an example of equity in the broad meaning of those words. And that is the most important benefit: that we can be an example or inspiration to other companies.

What do you think workplace gender balance, diversity and inclusion means to the next generation (e.g., of leaders / customers / investors)?

Martha Peralta: At Banco BHD León we are driven by the responsibility of supporting an individual’s progress, whether it is economic or social, because we understand that in this way we contribute to the sustainable development of our country. We make decisions and execute initiatives based on the well-being of our people, our clients and society in general, demonstrating the importance of a strengthened organizational culture in terms of gender balance, diversity and inclusion. This is the legacy we want to leave to future generations: a society without limitations in which gender balance, diversity and inclusion favor the creation of more opportunities for all people.

ABOUT BANCO BHD LEÓN

Banco BHD León is a financial entity of economic success and human success with a comprehensive approach to business and social management of the company. In its almost 50-years of history, Banco BHD León had a track record of innovation and contributions to the development of the country’s financial system. It was the first multiple bank in the Dominican Republic with a corporate governance model recognized by international risk rating agencies, and with a history of alliances, mergers and acquisitions that have positioned it in one of the first places in the Dominican financial sector. It has a sustainability strategy that combines the social, economic and environmental vision of the company, through different focuses of action and initiatives that contribute to the 2030 agenda for the sustainable development goals. Banco BHD León Bank is part of the Financial Center Banco BHD León, considered the most diversified, widest and most integrated conglomerate of financial and related companies services in the Dominican Republic.

ABOUT EDGE CERTIFICATION ​

EDGE is the leading global assessment and business certification for gender and intersectional equity. EDGE Certification involves a rigorous third-party review of representation across the pipeline, pay equity, effectiveness of policies and practices, and inclusiveness of an organization’s culture. As an integral part of the assessment, statistical data is analysed, policies and practices are reviewed and employees’ experiences of career development opportunities in the current workplace are accounted for. Depending on the specific results of each organization, an action plan is formulated, and firm commitments towards its implementation.​

​EDGE Certification meets organizations where they are in their gender balance journey (EDGE) and in their intersectional equity journey (EDGEplus) through its three levels of certification: Assess, Move and Lead. A certification at the EDGE Assess level recognizes commitment, one at the EDGE Move level showcases progress and a certification at the EDGE Lead level celebrates success in fostering gender equitable workplaces. An EDGEplus certification further recognizing its commitment to analysing intersectional issues between gender and one or several of the following additional dimensions: gender identity, race/ethnicity, LGBTQI+, working with a disability, nationality and age.​

​EDGE Certification is built around the independent third-party certification of data and information and is distinguished by its rigour and focus on impact granted by one of the EDGE accredited independent third-party certification bodies – SGS, Intertek or FloCert, it remains valid for a period of two years. EDGE’s current customer base consists of over 200 large organizations in 50 countries across five continents, representing 30 different industries.

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How did the business case for gender balance D&I evolved over the 18 months? How did the conversation around the business case evolved/ What changed/ What was expanded/ What is considered no longer current?

Frédérique Schepens: Gender equality has been a key principle of the EU since the provision on equal gender pay for men and women was introduced in the Treaty of Rome back in 1957. At the European Investment Fund (EIF) our Diversity and Inclusion Policy reinforces gender and equal pay as one of the cornerstones of our organization. Our D&I policy which was introduced in 2018 and revised in 2021, sets out ambitious and realistic goals to be cascaded throughout our departments, starting at the recruitment phase and up to management level.

The EIF began its journey together with EDGE in 2020 in a bid to strengthen our policies and practices from a gender perspective. A conscious effort has been made to help qualified female candidates break through the glass ceiling, and EIF management has been paying special attention to continuously support the cause of female advancement by encouraging women to assume increased responsibilities and apply for management positions. With the assistance of an external assessment center, we targeted a selection of heads of units, and gave them the valuable opportunity to focus on their development gaps, and to have a serious development discussion with their manager in order to better prepare them for future management positions. During the past few years, we have also sent a few female managers to participate in an external cross-mentoring program, and we are looking at ways to expand the impact in 2022. Although with some way to go, we are pleased to measure an increase in the number of females in both management and professional functions levels as of date.

In a bid to eliminate bias from the very start of the recruitment process, in 2021 HR drafted a short guide for recruiting managers to encourage them to see past their unconscious bias. This guidance is now systematically shared with hiring managers during the launch of each recruitment campaign. In addition, there is a clear emphasis on the need for the list of candidates to contain sufficient gender and nationality diversity in proportion with the overall list of applicants. In the case where the balance is not respected, HR may propose a re-publication with an aim of attracting a more diverse selection of candidates.

We want to see diversity and inclusion become part of the EIF DNA. To achieve this, we have increased the number of articles published for staff on this important topic, including a blog on the National Diversity Day in Luxembourg that encouraged colleagues to engage in the conversation about the importance of a diverse workforce & an inclusive working environment, and communication around Father’s day with a focus on encouraging our male colleagues to take parental leave. An inclusive environment begins with the use of inclusive language, and so in 2022 we aim to apply gender-neutral language in a pragmatic manner to our policies and procedures, including the communications that we publish internally and externally.

EDGE certification brings visibility and credibility to the change happening inside the organization. At the same time, it creates the premises for diverse talent to thrive at work. Tell us some stories about how your employees benefit from the EDGE certification journey of your organization.

Frédérique Schepens: During the EDGE evaluation process, we reinforced our commitment to regularly evaluate our internal HR policies and procedures. This includes our diversity and inclusion policy, and our guidelines on telework, put in place to nurture a workplace environment to attract and retain talented employees by including favorable conditions such as encouraged parental leave, flexible working conditions etc.

In 2021, our HR department contracted the services of KPMG Luxembourg to execute a remuneration survey. In addition, we are dedicated to conduct yearly gender pay gap assessments which cover base salaries, awards and other cash benefits using the regression analysis and under the responsibility of the HR department who will also proactively communicate on the EIF’s commitment to ensure gender pay equity. The next assessment is planned for 2022.

In 2022, we will also be launching a training on unconscious bias, organized in three separate sessions: a session for HR, a session for management staff, and a session for all staff.

What do you think workplace gender balance, diversity and inclusion mean to the next generation (e.g., leaders/ customers/ investors …)?

Frédérique Schepens: Our diverse workforce has been one of EIF’s essential assets since its establishment in 1994 and is a reflection of our own modus operandi. Unlike other EU institutions, EIF’s objectives are both market- and policy-driven. EIF manages resources on behalf of public institutions like the European Commission or the European Investment Bank. At the same time, EIF pursues public policy with a market-oriented strategy, investing pari-passu with private investors and seeking a positive return. This type of hybrid nature calls for a diverse workforce including a variety of profiles that can meet the multifaceted requirements of EIF’s mission.

For any leader, a substantial diversity and inclusion strategy will lead to a broader talent pool of candidates. An inclusive workplace will help to decrease turnover, and help increase the satisfaction and commitment of their teams.

For customers/investors there is more than just a reputational aspect, working with an organisation where diversity is shown as key provides our investors with multiple creative viewpoints and perspectives, allowing us to find new and improved ways to accommodate their needs.

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How did the business case for gender balance DE&I evolved over the last 18 months?

Ria : The EDGE certification and our efforts towards gender balance in the organization have a significant impact on our institutional performance. The IDB Group finances its operations by issuing bonds in the international capital markets and the financial rating agencies are those that assign us our credit ratings, which have been triple A since 1962. Increasingly, these rating agencies are looking at social elements such as diversity as a component for our qualifications. Positive scores in this regard correlate with a reduced cost of capital that could translate into higher investor interest in IDB Group bonds and consequently could help lower borrowing costs for our clients. This is important because, in the last 18 months, Latin America and the Caribbean have been facing one of the worst crises in their history, the full magnitude of which is hard to quantify. Over the next several years, the countries we serve will have to allocate the limited financial resources they have to policies for overcoming the health crisis, containing its social and economic costs. Therefore, the low borrowing costs will ensure that our countries can focus on economic recovery and the transversal issue of gender inclusion.

The IDB Group has also developed an agenda called Vision 2025 where our institutional priorities focus on the recovery of Latin America and the Caribbean, considering diversity and gender as cross-cutting issues. Through this agenda, the organization is broadening its approach to gender balance with a focus on intersectionality. The pandemic has highlighted that all experiences and responses are not equal, and some groups may be experiencing forms of bias or discrimination. Intersectional gender equality offers a new lens through which we, as an institution, can address individual concerns and challenges based on themes such as race/ethnicity and sexual orientation within our organization and our projects in the region.

As employers, we want to be a workplace that celebrates and values the individualities and experiences of our employees. We believe that having a diverse workforce, past the monochromatic lens of gender only, positively connects with a unique skillset for problem-solving and the means to address the most urgent development challenges in Latin America and the Caribbean. This is why, in December 2020, we changed our strategy framework from “diversity and inclusion” to “diversity, equity and inclusion”. For us, fairness is a way of looking at how our employees are treated based on their respective needs. This may include equal treatment or different treatment, but is considered equivalent in terms of rights, benefits, obligations, and opportunities. The EDGE certification has played a critical role in supporting our efforts to ensure that equity is at the core of everything we do, including our talent management, and that we can be a role model for the region.

EDGE Certification brings visibility and credibility to the change happening inside the organization. At the same time, it creates the premises for diverse talent to thrive at work. Tell us some stories about how your employees benefit from the EDGE Certification journey of your organization.

Ria : One of the most tangible benefits of the EDGE Certification has been the process of developing an action plan to close the gaps which are identified during the recertification process. For example, one of the areas identified for development during the first EDGE certification process was the inequity in our parental leave policies. At that time, the IDB Group had separate policies for men and women (maternity and paternity leave). We recognized, then, that our policy was not gender-inclusive and that we needed to focus on both men and women equally. Moreover, we saw an opportunity to create greater work-life integration for all employees with caregiving responsibilities regardless of gender. The decision to revise our parental leave policy was and continues to be a visible transformative action inside the IDB Group in support of all genders.

Another initiative we started after the first EDGE certification was the Diversity, Equity, and Inclusion Awards Program to recognize employees whose commitment to equity and inclusion is unwavering. Recognizing the work of our employees was key to ensuring there are diverse opinions, ways of working, and a sense of belonging in the workplace. This program was an opportunity to celebrate the good work of our employees. The revelation of positive behaviors and support of equity provided strong examples for others to follow. The creation of this recognition program was one of the recommendations emanating from the first EDGE certification and was directly responsible for us promoting visibility and credibility to our diversity, equity, and inclusion agenda.

Our EDGE certification has also helped us strengthen our platforms and resources for women employees to succeed. We are proud of our Emerging Women Leaders (EWL) program, which currently has more than 280 graduates – women leaders – across the region, and our Employee Resource Group called Women NET, dedicated to raising awareness and support activities that foster the empowerment of women and gender equality. The women who have taken advantage of these platforms understand that it is time to change the diversity among our leadership teams and have demonstrated a dedication towards fostering new forms of leadership and empowerment within the organization.

Obtaining this certification for the third time in a row is significant, as it publicly demonstrates that we are intentional in our actions to close gender gaps and promote an equitable workplace. As the first development bank in the Americas and the second worldwide to obtain the second level of this distinction: EDGE Move, we want to serve as an example for the region and demonstrate how equity is at the center of all our priority areas, both internally and in projects in the region.

What do you think workplace gender balance, diversity and inclusion means to the next generation (e.g., of leaders / customers / investors)?

Ria : Gender balance is a persistent discussion in many spectrums of society, development, politics, culture, and more. Efforts by individual activists, private enterprises, and organizations like the IDB Group are instrumental in changing attitudes towards, equal pay for equivalent work, sexual abuse and harassment, and equal opportunities for men and women in healthcare, economic activity, and education.

Moreover, the discourse is also shifting past a unilateral focus on gender to diversity and inclusion more generally. When we think about women and girls now, we are also thinking about the unique experience of women with intersecting identities.

Realistically we know that the impact of the pandemic will affect present and future generations, so we must actively engage in policy dialogue and partnerships to ensure that gender equality and empowerment remains a key issue in national policies and in the programming of our borrowing member countries. Our clients are looking to us as a trusted advisor and development partner for technical and financial support in pursuit of gender equality because we can all agree that when women can thrive alongside their male counterparts, economies grow, and countries thrive.

Internally, our employees are also following everything we do; not just to promote a gender-equitable working environment but to create inclusive conditions for diverse talent. Today’s employee is searching for a workplace where there are equal opportunities for men and women to earn a living and succeed, while also having the flexibility to be caregivers and pursue their personal goals. We have actively been complying with the demands of new employee aspirations. For example, we are providing a financial support facility for those who are turning to alternative family planning options. Moreover, and for several years now, we have implemented an alternative working schedule policy to help employees achieve better work-life integration. The pandemic, which has meant that everyone is working remotely, caused us to double our efforts to foster a climate of trust, flexibility, and autonomy with even more options which means all employees have the flexibility to manage their time with more adaptability.

At the IDB Group, our mission is to improve lives. We promote this by visibly demonstrating the value of inclusion and working towards securing a world of equal opportunities and outcomes for all, including our next generations.

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EDGE Certified Foundation

IDB Invest was among the pioneers to use a gender lens and engage in environmental, social, and corporate governance (ESG) investing. Why do you consider gender equality, diversity and inclusion (GDI) in the workplace as material criteria in your investment and financing activities? How has this changed in post-pandemic recovery?

Alexandre Da Rosa: Since its beginning in 2016, IDB Invest has considered gender equality and, more recently, diversity and inclusion, as universal priorities in its operations. The rationale behind this lies in IDB Group’s mission of supporting inclusive economic growth in Latin America and the Caribbean. This means that we support these countries and the private sector in their growth and development journey. Strengthening diversity and inclusion is one way of doing that. Research has shown that businesses that are led by diverse teams – in terms of gender and ethnicity – yield better results. Moreover, the companies with higher performance tend to have more women in line roles than staff roles. (McKinsey, Delivering through Diversity, 2018).

The belief that diversity is one of the keys to business success has internal and external implications for IDB Invest. Internally, IDB Invest is EDGE Certified. This is a key instrument for us to have a standardized way of measuring our progress toward a more gender-balanced workforce. We are very proud to have been EDGE Move Certified this July. Externally, having GDI as priorities means that we strive to have an impact on women, men, Afrodescendant and indigenous and traditional people, LGBTQ+ and people with disabilities – in every investment we make.

Having a workplace that promotes equal access to opportunities plays a key role in priority sectors like tourism, where women represent 60% to 70% of the workforce [1], and agribusiness. These industries are labor intensive, and women play an important role in them. For example, employee attrition can increase credit risk; hence, GDI are material in many of the priority sectors in which we operate.

The importance of increasing inclusion has taken center stage in a post-COVID recovery environment. The service sectors, which require physical contact and have been the most affected by the pandemic, account for 30% of female workers in Latin America and the Caribbean. Since the pandemic began, we have experienced a 17.7% decrease in employment of women compared to 13.1% for men. This is happening in a context where women dedicate between 22 and 42 hours per week to housework and dependent care, while men dedicate 15 hours. Furthermore, we know that men’s employment is increasing at a higher rate than women’s. [2] Diversity and inclusion were an “angle” that we looked at in our investment strategies, but they are now essential to ensure that our financing is meeting the needs of a post-COVID reality: We must promote women’s employment and flexibility in the workplace. This is a key part of IDB Group’s 2025 vision: the reactivation of the productive sectors supported by gender equality and diversity.

What are the most important factors that can contribute to the large-scale adoption of gender balance, diversity and inclusion in the workplace and on boards of directors as key ESG scoring and reporting indicators?

Alexandre Da Rosa: Any type of instrument that can help scale the adoption of diversity and inclusion actions needs to provide evidence that there is a clear commitment from top management and/or boards for having a more equitable and inclusive workplace, and that the commitment is followed up with action. Three features that can help to ensure this and inform an ESG scoring are financial materiality, standardization and verifiability of the instrument.

As for financial materiality, we know there is a link between diversity in leadership and financial performance. Multiple studies by financial institutions, consulting firms and academia have proven the correlation.

When it comes to standardization of metrics associated with scoring, it is important to ensure comparability across companies, industries and geographies. Our Women’s Empowerment Principles tool, a self-diagnosis tool on gender equality, allows companies from all industries, geographies and sizes to understand where they stand in their journey. It provides them with best practices so they can start implementing them. Initiatives like the 2X Challenge [3] and particularly HIPSO [4] are also great examples of the effort to standardize the way the private sector understands the impact of female empowerment and measures it.

Finally, results should be verifiable, which is where third-party certification becomes relevant. It is a way of providing assurance to an investor that whatever metrics are being used are supported by accurate data and concerted efforts to conduct business inclusively. This last point is key in a post-pandemic context. EDGE Certification is an effective tool, as it manages to reunite these three attributes, particularly the last one.

How is EDGE Certification contributing to advancing your ESG agenda with your portfolio companies?

Alexandre Da Rosa: As investors we promote GDI in our investments in different ways, depending on what is most material (workforce, value chains or markets) to our client. Regardless of the focus area, our recommendations are always actionable and have indicators that allow us to measure progress. Consequently, our end-to-end Impact Management Framework [5] allows us to assess the potential impact of each investment in terms of GDI, and track and evaluate the impact over time. In this context, EDGE Certification, as well as other certification programs that we support that target equality in the workplace, such as the Gender Equality Seal from the UNDP, have four characteristics that we value as investors:

The first one is benchmark. Certifications such as EDGE provide an assessment of where the company stands vis-à-vis dimensions of gender equality that have been globally validated by an array of stakeholders: academia, investors, companies, talent experts and gender practitioners. This methodology drives our clients to fight any unconscious bias and discrimination in recruitment, one of our ESG requirements on labor and working conditions. [6]

Second, it drives companies to act on their results, as they cannot obtain the certification unless they have adopted an action plan that addresses the gaps. As investors we are interested in ensuring that our clients have a clear roadmap with actions and KPI’s to accelerate their journey toward gender balance, diversity and inclusion.

Third, certifications are applicable to all industries and geographies, by benchmarking companies across the world.

Finally, it requires a third-party verification, providing investors assurance of the reliability of the results.

How have you implemented this in practice? Can you share some successful examples?

Alexandre Da Rosa: We have supported clients in obtaining EDGE Certification by either financing the EDGE assessment, the implementation of the action plan, or by working with our clients in the selection of the actions that make the most sense for them to implement to reach the next level in EDGE.

We are proud to see that Danper, a Peruvian agribusiness company that we initially supported to take the EDGE assessment, is now seeing the value of becoming EDGE Certified and has not only maintained but also continued the path to recertification by itself. Danper is now EDGE Move Certified. For IDB Invest, this is a sign of success: What we see as an instrument to accelerate gender balance and for development, is seen by the client as value added to its business.

In addition to seeing the value of meeting gender balance criteria, EDGE helped first-mover banks in closing the gap in access to financing for women to take a holistic approach to gender equality, by looking at how these banks are performing internally on their inclusive policies and practices. EDGE Certification confirmed that clients like BHD León in the Dominican Republic are on the right path to achieving gender balance, making sure that what they are doing externally to address women’s financial needs is consistent with their internal efforts of equality. Today, BHD León has more than 37% female representation in management positions with profit and loss responsibilities, well above other banks in the region.

Last but not least, we issued our own gender bond in Mexico in March of this year. Being EDGE Certified sent a strong signal to the markets: IDB Invest is 100% committed to gender balance both internally and in our investments.

What impact have you seen from your gender equality, diversity and inclusion in the workplace investment and financing strategies to date?

Alexandre Da Rosa: Our investments in gender equality, diversity and inclusion have put the conversation about diversity at the forefront of financial negotiations. For example, IDB Invest only invests in private equity funds that have at least one woman on the investment committee. This has sent a powerful signal to the market: For IDB Invest, having diversity at the highest decision-making levels will make our investments better.

In addition, the use of blended finance has helped to encourage our clients to measure their gaps in the workplace though our Women’s Empowerment Principles tool [7] – which is particularly relevant when our clients are early in their equality journey – to identify their gaps and implement programs that promote the inclusion of female minorities in STEM fields. In at least four companies across the region, IDB Invest has seen how efforts to recruit more inclusively have produced results beyond the incentives IDB Invest has provided for them to start working on these issues. We have seen companies now in their fourth year of internship programs integrating women engineers in areas such as solar design and software.

In addition to driving diversity in the fund decision-making process, IDB Invest is mobilizing resources to target women-led businesses through financial instruments such as social gender bonds. IDB Invest has issued more than five bonds targeting women-owned and led businesses in four countries in Latin America and the Caribbean in addition to our own IDB Invest issued gender bond. More importantly, financial institutions have come to IDB Invest for financing and advice on how to increase the share of women-led companies in their portfolios.

Blackrock’s announcement on their investment strategy and gender balance, the Bloomberg Equality Index or Equileap Equality Index are practices and instruments that are being adopted across the financial world. Gender balance, diversity and inclusion are core part of our mission, and we will continue to work and promoted them across the financial world.

References:

[1] IIDB, “Más allá de unas vacaciones: el turismo como fuente de empleo”, 2018.

[2] IDB, “Observatorio Laboral COVID-19: Un año de COVID-19: ¿Cuál es la magnitud de la crisis laboral?”, 2021.

[3] The 2X Challenge is a G7 initiative that calls for G7 countries and DFIs to collectively mobilize $3 billion for women’s empowerment. It sets criteria so investments can be considered as mobilizers of private investment for women’s empowerment.

[4] Harmonized Indicators for the Private Sector.

[5] For more information, see our report, Managing a Portfolio for Impact.

[6] IDB Invest’s investments must meet IFC Performance Standards. In this case, we refer particularly to Performance Standard 2, which addresses non-discrimination and equal opportunity.

[7] The Women’s Empowerment Principles Gap Analysis Tool, created by IDB Invest, IDB Lab, UN Global Compact and UN Women, is a free diagnostic tool that provides a free assessment of companies’ policies and practices impacting gender equality.

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Diversity, equity and inclusion transform both employee experience and business results. Equity also faced unprecedented setbacks as a result of the COVID-19 pandemic, hence it is today even more important to foster a more equitable and inclusive workplace. A new partnership between Valore D and EDGE seeks to harness the potential for organizations that is unleashed by embracing DE&I.

Valore D and EDGE are proud to announce a new partnership established to monitor DE&I within the Italian corporate world and accelerate workplace equity nationally. This announcement comes at the conclusion of Italy’s G20 presidency, whose focus on people, planet and prosperity included a targeted assessment of gender in the workplace and in society at large.

Both Valore D and EDGE have a successful track-record in empowering organizations to turn diversity into a major asset. With over 270 member companies in Italy and a highly active programme and network, Valore D is the leading diversity-focused association in Italy committed to building a professional world without discrimination and in which gender equity and the culture of inclusion supports innovation, progress and growth of organizations and of the country.

EDGE provides the leading solution for organizations to measure, accelerate and get certified on where they stand in gender and intersectional equity and works with over 200 prestigious companies and organizations globally.

Companies with greater diversity face up to market challenges more effectively. To support companies, Valore D has developed a concrete tool, the Inclusion Impact Index®, which measures the effectiveness of a company’s diversity and inclusion policies starting from the impact in four macro-areas: governance, ability to attract, development, and retainment, so to enhance female talent over time.

The partnership with ValoreD strengthens our presence in Italy in a time where both the public institutions as well as private sector have voiced their commitment to women’s economic empowerment in the country.

“There is no progression in gender equality unless we measure”, comments Paola Mascaro, President of Valore D. “Setting clear goals and KPIs and then monitoring and tracking progress is crucial to the advancement in DE&I for both private and public sectors. As indicated by the G20 Empower – the Alliance for the Empowerment and Progression of Women’s Economic Representation – measuring to improve, building and nourishing an efficient and sustainable women talent pipeline, and enabling women to lead the future are key points to closing the workplace gender gap in the private sector. A partnership between EDGE and Valore D can provide a positive impact and the potential for acceleration in all three of these areas.”

“The partnership with ValoreD strengthens our presence in Italy in a time where both the public institutions as well as private sector have voiced their commitment to women’s economic empowerment in the country.”, says Simona Scarpaleggia, Co-CEO of EDGE Strategy.” At EDGE we are proud to support organizations by providing them with insights and concrete solutions to improve DE&I and thrive – both in terms of employee experience and business impact. Through this partnership organizations that participate in the Valore D Inclusion Impact Index® will be fast-tracked to deepen and accelerate their DE&I journey with EDGE’s robust analytical framework and independent third-party certification system.”

The importance of partnership in support of the G20 Empower initiative is clear right now: it’s time to act to reshape organizations to become truly diverse, equitable and inclusive, as well as to contribute toward a more sustainable and humanistic economy.

For further information on today’s announcement please contact our communications teams:

Press office Valore D
Paola Trotta

+39 3791551887

Ariel Mafai Giorgi

+39 3356489445

Press office EDGE
Silene Stoppa

+41 41 530 11 49

Valore D

Valore D is the first association of companies in Italy, over 270 to date, which for more than 10 years has been committed to building a professional world without discrimination, in which gender equality and the culture of inclusion support the innovation, progress and growth of organizations and of our country. Valore D supports companies by providing know-how and effective tools for a Diversity & Inclusion strategy, and offers the opportunity for inter-company dialogue thanks to the exchange of good practices and continuous dialogue between the members, Valore D is a reference point for institutions and a promoter of actions for social and economic development. of the country.

EDGE Strategy

EDGE Strategy offers an integrated SaaS-based DE&I solution allowing organizations to measure, accelerate and get certified for where they stand in terms of gender and intersectional equity. EDGE’s customer base consists of 200 large organizations in 44 countries across five continents, representing 29 different industries.

Pioneers in gender-lens investing and ESG-investing, the International Finance Corporation (IFC) considers strategies for gender, diversity and inclusion as material lending and investment criteria. Using the EDGE solution allows the IFC to gain a snap-shot overview of their clients’ gender equality status, to clearly convey the value of gender equality and to embed effective metrics for bringing about transformation. We speak with Amy Luinstra – Regional Lead, East Asia Pacific, Gender and Economic Inclusion Group – about how the IFC works with EDGE to support its lending and investment activities.

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Why do you consider gender equality, diversity and inclusion in the workplace as material criteria in your investing and financing activities?

“The short answer is that companies with better gender balance make more money and face fewer ESG risks. But the broader answer is that our work on gender is motivated by both a sustainable development case and a business case.

As part of the World Bank Group, we have twin goals to eliminate extreme poverty and boost shared prosperity. And neither of these are possible without significant progress on gender equality, so it’s part of our mission. Fully including women in the economy is a development accelerator. World Bank research from March 2020 found closing lifetime earnings gaps between women and men could yield a gender dividend of USD 172 trillion.

From an IFC perspective, we’re financing companies and therefore the business case is also important. We have consistently found that companies with better gender balance perform better. Recent research we conducted with publicly listed companies in East Asia found that those with gender-balanced boards earned two percentage points higher returns than those with all-male boards. Another study on private equity and venture capital in emerging markets in 2019 found that gender balance in senior investment teams led to 10% to 20% higher returns compared with funds that have a majority of male or female leaders. Clearly, the payoff from gender diversity is real. That’s why we work with the private sector to assess gender diversity, conduct research, and then address the gaps.”

What will lead to large scale adoption of gender balance, diversity and inclusion in the workplace and on boards as key scoring and reporting indicators?

“I think that understanding the business case I just referred to, and acting on it, is crucial. We observe that companies displaying strong leadership for gender balance issues understand the business benefits. But there are also social and reputational payoffs.

Reporting on consistent gender metrics is important. One example is stock exchanges that have implemented ‘comply with gender targets or explain’ provisions in their listing guidelines. This can activate a competitive spirit. This extends beyond stock exchanges to reporting requirements set by governments, and from gender balance targets to wider transparency related to gender-smart policies and practices. Consistent metrics, including those EDGE uses in its certification, are key because they help set the benchmark and can ignite a competitive spirit which generally tends to accelerate progress.

In addition, awards programs or certifications, like Employer of Choice awards and EDGE Certification, can be strong motivators. They are particularly useful when they’re backed up by verifiable objective criteria. In most countries that we work in, there is competition to attract and retain the best talent. Being verified that you’re an employer of choice or certified is a big selling point in tight labor markets.”

How is EDGE Certification specifically contributing to advancing the ESG agenda with your portfolio companies?

“EDGE Certification is an important part of the toolkit we offer to companies. Many companies, across diverse sectors, find certifications valuable and the market responds to them. The IFC often supports certifications that align to our values, objectives, sustainability framework and performance standards – and we ask our portfolio companies to attain these where they are relevant.

EDGE Certification is one we encourage among our portfolio companies, and it can be supplemented by IFC gender advisory services. If we review the portfolio of companies that the IFC has taken through EDGE Certification, we see it represents a range of sectors and geographies, which tells me EDGE is a broadly applicable solution.”

Which characteristics of the EDGE Certification solution do you feel are particularly valuable?

“I think what the IFC finds valuable might vary from what the companies attaining certification find valuable.

One of the things I love about the EDGE Certification and its assessment process is the mix of data sources that generate very helpful data sets, either for benchmarking or data visualization. One specific example is the career transitions chart that depicts gender disaggregated data from the previous year’s exits and entries, recruitments and promotions. It shows, in one picture, where a company is positioned currently and where it needs to focus to accelerate progress.

An independently verified certification sends a clear signal to the market that there’s a business case for gender equality. One example is a construction company in the Pacific that finds its EDGE Certification valuable when it comes to winning public tenders. It specializes in social infrastructure, schools and health clinics, and the government responds positively to the EDGE Certification verification of their commitment to gender equality. Another example is the appeal EDGE Certification offers potential employees in a tight labor market. Therefore, the business case, or the specific advantage of EDGE, varies by market and by sector. Still, EDGE Certification also has characteristics that make it appealing to a broad range of companies, economies and geographies.”

How does implementing the EDGE solution with clients dovetail into the wider gender advisory work being done by the IFC?

“We find EDGE Certification is an excellent entry point for us to start working with companies because it offers a comprehensive snapshot of where the company is positioned on gender equality. An assessment for EDGE Certification helps us identify a client´s priorities on gender equality, then we can help address these priorities.

For example, the EDGE employee survey can reveal underlying issues within the corporate culture, such as sexual harassment or bullying behaviour directed toward women. We can then begin working to create respectful workplaces, which includes not only work on an anti-bullying and anti-sexual harassment policy but also awareness-raising, training and a wider effort to embed a more respectful workplace culture. In summary: EDGE is a good entry point for us to help clients through a range of interventions that can help boost their gender-balance performance.”

Do you offer the EDGE solution to clients across a range of industries and geographies? And is there a particular example that stands out?

“Yes. We use EDGE with client companies across the globe and in sectors ranging from construction to tourism, food processing, banking and the garment industry. Our five most recently EDGE-certified clients are from diverse countries and sectors, from Papua New Guinea to Brazil, Vietnam, Sri Lanka, and Pakistan. No matter the location or industry, we use the EDGE assessment to see where the bottlenecks are and then work with companies on addressing those bottlenecks.

One example that stands out is the EDGE Certification for a garment industry company in Vietnam. The EDGE Assessment allowed us to identify issues in the way men and women were being promoted. While there was more-or-less gender balance across different levels, there was an imbalance in promotions, so equality in the career pathway was not working.

We guided the client through the process of identifying desired key skills and career pathways, helping them to ensure equal opportunities for women – who usually joined as sewing machine operators – to make clear how they could advance. We also helped the client in effectively disseminating information to staff about skill-development opportunities to move into senior management-level positions. It’s important to note that this is a company whose overall EDGE results were positive. EDGE Certification strengthens the case for this client to become an employer of choice, and it also allows us to work with a client to further improve.”

Yes, we are very excited about the potential of EDGEplus to help us address intersectionality issues, which are always present even if clients are not demanding to address them yet. There has been strong interest in markets where we’ve engaged on topics related to disability inclusion as well as sexual orientation and gender identity. But I think, right now, for most markets intersectional equity is something we as the IFC are often raising with the clients and not something they are demanding. But this will change, and we’re delighted to have the opportunity to work with the EDGEplus tools to start to put analytical rigor behind this analysis.

Are you working with companies on intersectional equity?

“Yes, we are very excited about the potential of EDGEplus to help us address intersectionality issues, which are always present even if clients are not demanding to address them yet. There has been strong interest in markets where we’ve engaged on topics related to disability inclusion as well as sexual orientation and gender identity. But I think, right now, for most markets intersectional equity is something we as the IFC are often raising with the clients and not something they are demanding. But this will change, and we’re delighted to have the opportunity to work with the EDGEplus tools to start to put analytical rigor behind this analysis.”

The data we collect over time with our clients show both operational and reputational improvements as a result of the work we do. It’s important that the IFC itself is EDGE Certified. We’ve been working with the tool for six years and this adds to our credibility in the market. We know first-hand that the metrics really do motivate senior management. And, as an organization ourselves, we’ve made a lot of progress in the last six years. All of this helps our reputation in working with clients—if we had a dramatic gender imbalance in our leadership team or workforce, then we would not be able to credibly deliver these services.
The second point I wanted to make is about COVID-19, because its impact on gender balance in the workforce is pronounced and negative. And this is true for every country and economy in which it’s been studied. In some markets unemployment rates are now more than double for women what they are for men. A study by McKinsey Global Institute found that women are losing jobs 1.8 times as quickly as men. Even companies we’ve worked with to ensure the COVID impacts are not gender related are still seeing gender imbalance. We just see women dropping out of the workforce. And this makes standardized solutions such as EDGE important to make organizations aware of the inequities from the COVID impact.

Are there any other points you would like to make?

“The data we collect over time with our clients show both operational and reputational improvements as a result of the work we do. It’s important that the IFC itself is EDGE Certified. We’ve been working with the tool for six years and this adds to our credibility in the market. We know first-hand that the metrics really do motivate senior management. And, as an organization ourselves, we’ve made a lot of progress in the last six years. All of this helps our reputation in working with clients—if we had a dramatic gender imbalance in our leadership team or workforce, then we would not be able to credibly deliver these services.

The second point I wanted to make is about COVID-19, because its impact on gender balance in the workforce is pronounced and negative. And this is true for every country and economy in which it’s been studied. In some markets unemployment rates are now more than double for women what they are for men. A study by McKinsey Global Institute found that women are losing jobs 1.8 times as quickly as men. Even companies we’ve worked with to ensure the COVID impacts are not gender related are still seeing gender imbalance. We just see women dropping out of the workforce. And this makes standardized solutions such as EDGE important to make organizations aware of the inequities from the COVID impact.”

EDGE Certified companies are serious about putting gender and intersectional equity at the heart of their business strategy. We sat down with Christopher Bylone, Global Director of Diversity, Equity & Inclusion at International Flavors & Fragrances, to ask about today’s hot topics in DE&I.

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EDGE: What’s currently at the forefront of organizational DE&I agendas?

Christopher: Discussions on best-in-class strategies are focused on ‘equity’. At IFF equity is about recognizing the roadblocks impacting historically underrepresented groups in the workplace and purposefully working to remove them. Full equity means all colleagues across the workplace’s diversity spectrum have equitable access to and opportunity for advancement at every stage of the employee life cycle, including talent acquisition and career development.

It’s no longer enough to only focus on diverse representation. Organizations must be intentional about equitable practices at all levels. And this intentionality must focus on intersectionality. While focusing on gender equality is vital for creating a diverse, equitable and inclusive culture, it’s not enough. A DE&I strategy that’s not examining the equitable representation of women of colour, women working with a disability, LGBTIQ+ women, trans women, non-binary or individuals of other intersections, will do so at its detriment.

EDGE: How has the Covid-19 pandemic impacted DE&I advancements in organizations?

Christopher: Initial concerns were that the pandemic would negatively impact engagement, as employees and managers both took time to fully understand this new way of working. But it’s led to a shift in the way organizations think about how work gets done.

A senior IFF leader shared a great story: the shift to home office saw an already top-performing team member dramatically improve the quality of his work and outperform his peer group. She got curious and asked him what changed. His response altered her way of thinking on remote work. He told her that, as a person with autism, being in the traditional office environment takes a lot of his energy. Now that he can work from home, he can take the energy he has spent just dealing with the buzz of the office and direct it into his work.

We need to capture these positive transformations. The pre-pandemic culture of hiring-for-fit must be replaced with selecting talent that will add value to the organizational culture. This new normal is an opportunity: it opens up pipelines of talent previously ruled out by geographic limitations. Fully understanding how to access these new talent pools will take time, but it’s an opportunity to further diversify the workplace.

EDGE: Which of the positive changes and achievements do you believe will be sustainable?

Christopher: I would reframe this question to “Which of the positive changes and achievements do you believe MUST be sustainable?” Intersectionality is key here. Our world becomes increasingly complex and interconnected every day. Each of us have unique identities and experiences that shape who we are and influence our perspectives and our interactions. Too often, individuals belonging to underrepresented groups find themselves having to temper certain aspects of their identities in order to make themselves more acceptable in the workplace.

For example, in some workplaces, Black employees state they are expected to wear their hair in ways that are deemed ‘appropriate’; women also report being taken more seriously by their peers when they adopt traits that are considered more traditionally ‘masculine’; LGBTIQ+ individuals often say they have to conceal their sexual orientation or gender identity for fear of being discriminated against, or in some cases, prosecuted by the laws of their country. And for individuals that stand at the intersection of multiple such identities, this struggle becomes particularly poignant.

As an organization with a deeply held commitment towards equality and equity for all, it is imperative that IFF provides a safe space for our employees to bring their whole and authentic selves to work. It would be disingenuous of leaders to expect employees to section-off different parts of their identities and experiences to fit in with the way an organization measures progress made on diversity, equity and inclusion.

EDGE: The ESG agenda is in the spotlight. Has this allowed DE&I professionals access to new conversations in their organizations?

Christopher: From my network of fellow DE&I professionals, across multiple industries and regions, I know the conversation has shifted from fighting for measurable KPIs to providing guidance on what to include. We’ve gone beyond just ‘diversity’ KPIs: they remain integral, but there’s a strong need to also incorporate ‘inclusion’ KPIs in the tracking and reporting that is done.

DE&I has also shifted from being the ‘right thing to do’ to being increasingly demanded by external stakeholders such as investors, customers and prospective employees. In fact, research by McKinsey & Co shows organizations frequently outperform their peers financially when they are highly diverse across multiple identities, can effectively manage that diversity and foster an inclusive culture. It’s therefore logical that companies are expected to deliver transparent reports on workforce diversity and robust plans and practices to ensure continued equitable representation at all levels, including senior leadership.

EDGE: How can employees advance the DE&I agenda within their organizations? And can employee advocacy shape the long-term strategy DE&I professionals champion?

Christopher: This is a particularly exciting question. When I start my day, I ground myself in the belief that I am working on behalf of the 24,000 IFF employees all around the globe. We believe a best-in-class DE&I program is employee led – it is our DE&I volunteers who make it possible for us to create the positive change needed.

Structure is an important way to make this happen. Unlike many other organizations, we don’t have an ‘Executive DE&I Committee’ comprising of only Executive Committee members. Instead, our ‘Global DE&I Steering Committee’ comprises employees from all global locations and levels and works on behalf of the Executive Committee. The global agenda is then translated into regionally and community relevant plans by our ‘Regional Inclusion Councils’ (RICs) and ‘Colleague Communities’ (also known as ‘Employee Resource Groups’).

As a US-based DE&I professional, I am always asking myself, “How will this action/decision have a positive impact on the shop floor employee in Singapore or Chile or Slovenia?” The answer to this question is the very reason we have the RICs and Colleague Communities. They allow direct involvement of the very employees who will be impacted by new decisions or utilise new platforms. It’s crucial we involve individual contributors at every stage of the process – this ensures we create and sustain a program that is truly inclusive of their voice and expectations.