Key Points:
- COVID-19 has propelled women into better situations in corporate diversity mandates, gender lens funds, women in tech, and women investors.
- Corporate diversity mandates have been influenced by the pandemic, leading to an increase in social awareness and a focus on addressing underrepresented communities in leadership positions.
- The number of gender lens funds has significantly increased, and geographical diversity is moving in the right direction.
- The work from home arrangement could lead to transformative change for women in tech, resulting in increased applications, hires, and leaders.
- Online investing for women has gained momentum post-pandemic, with women signing up to investment platforms at faster rates than men.
Women have been making progress for years, but at a glacial pace. Year after year, the same old bleak numbers persist in various areas such as senior management, boards, finance, tech, and investing. However, the effects of the COVID-19 pandemic have served as a catalyst and change accelerator in many areas, catapulting women into dramatically better situations across four key spaces. Let’s explore these four trends fueling the COVID catapult and how women are transforming the status quo.
1. Corporate Diversity Mandates
The Status Quo
“In the last two years, more than 60 companies went public in the US and Europe without a diverse board member.” — David Solomon, CEO, Goldman Sachs
While the statistics were alarming, there has been a shift post-pandemic. Companies like Goldman Sachs have announced mandates to only take US and European companies public if there is at least one diverse board candidate, with a focus on women.
The COVID Catapult
The pandemic has inspired an increase in social awareness, leading to a renewed focus on addressing underrepresented communities in leadership positions. NASDAQ has also proposed new listing rules related to board diversity and disclosure, aiming to push listed companies to address racial and gender equity in corporate boards.
2. Gender Lens Funds
The Status Quo
Gender lens investing has faced challenges such as low venture capital funding for women founders. However, post-pandemic, the number of gender lens funds has shown a significant increase, with a growing geographical diversity in targeted investment.
The COVID Catapult
The pandemic has made impact a universal priority, leading to a rise in gender lens funds and an increase in the number of women founders securing venture capital funding in Europe.
3. Women in Tech
The Status Quo
“Historically, there are too few women in tech, and the number is growing less than half a percent annually.” — Erica Pretorius and Duncan Stewart, CFA, Deloitte Canada
Sexual harassment in the workplace has often sabotaged women in tech. However, the work from home arrangement during the pandemic has provided additional flexibility, potentially leading to transformative change for women in tech.
The COVID Catapult
Positive statistics for women in the tech industry have emerged post-pandemic, with an increase in the number of women applicants, new hires, and leaders. The industry is becoming less female unfriendly, and the pandemic has led to shifts in diversity and inclusion policies in tech companies.
4. Women Investors
The Status Quo
Historically, there has been a gender investing gap, with fewer women investing in stocks compared to men. Post-pandemic, there is a compelling trend indicating a rise in women signing up to investment platforms at faster rates than men.
The COVID Catapult
The pandemic has led to a rising popularity of online investing for women, with a notable increase in the number of women investors on various trading platforms.
The Bottom Line
While 2020 has been a challenging year, these four COVID catapults have propelled women into better situations in various areas. It’s important to celebrate the progress women have made across corporate diversity mandates, gender lens funds, women in tech, and women investors.
If you liked this post, don’t forget to subscribe to the Enterprising Investor.
All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.
Image credit: ©Getty Images / Francesco Carta fotografo
“`
