The guidelines encourage large publicly traded companies in developed markets to continue to increase the representation of women on boards to 40%, up from the previous expectation of 30%.
TORONTO, January 19, 2023 – The Ontario Teachers’ Pension Plan Board (Ontario Teachers) has completed its annual review of the Proxy Voting Guidelines (Guidelines). The 2023 Directive strengthens the focus areas of publicly traded companies such as Diversity, Equity and Inclusion (DEI) and, in particular, sets higher expectations for the increased participation of women in board roles .
Reaffirming Ontario teachers’ long-standing belief in the benefits of diversity and the desire to see continued business growth in this area, the Guidelines protect large businesses in the marketplace. developing markets to seek to increase gender diversity on the board to at least 40%. Directors say that they are women, up from the previous expectation of at least 30% installed since 2013.
Supporting data indicates that there is a growing gender gap among key financial institutions in developed markets. In most of the developed markets that Ontario Teachers serves, the average difference across the board is over 30%. In addition, a few developed markets such as France, Italy and Norway have recruited at least 40% women.
“While we still consider the 30% target important, we are raising the bar to challenge public companies in developed markets to continue to grow as we strive to have a truly diverse and representative board,” said Anna Murray, Global Chief Executive Officer of Sustainable Investments. “We believe that improved diversity is key to board success, leading to better performance and delivering long-term shareholder value.”
Clear and timely reporting on diversity remains central to the guidelines. In order to improve transparency in the progress made by public companies on board diversity, Ontario Teachers’ is encouraging companies to separate gender diversity disclosures from other types of diversity. As part of these existing efforts, the Guidelines recommend expanding board member disclosure reporting to include those who self-identify as non-binary in addition to those who identify as female or male.
“When looking at increasing the participation of traditionally underrepresented groups on the board such as women, visible minorities including Black and Indigenous people, 2SLGBTQ+ identified people and people with disabilities, reporting on developmental differences beyond gender supports non-binary people and promotes more diversity on the board,” said Michael Cherny, director of Diversity, Equity and Inclusion.
The Guidelines continue to require boards to establish and publish time-bound goals for increasing the number of board directors identified as members of an underrepresented group. Reporting of performance against these goals and the use of self-disclosure are also encouraged because they represent a commitment to creating an office that is gender-diverse.
Ontario Teachers’ regularly monitors current and emerging management issues and trends to ensure that their most up-to-date and innovative perspectives are reflected in the Guidelines. For more information, read the instructions on the Business Administration page.
About teachers in Ontario
Ontario Teachers’ Pension Plan Board is a global investor with $242.5 billion in assets as of June 30, 2022. We invest in real estate in over 50 countries broad spectrum including public and private funds, fixed income, mortgages, commodities, natural resources, infrastructure, real estate and commercial growth to provide retirement income for 333,000 active and retired members.
With offices in Hong Kong, London, Mumbai, San Francisco, Singapore and Toronto, our more than 400 investment professionals bring deep expertise in industries from agriculture to artificial intelligence. artificial intelligence. We are a fully funded defined benefit pension plan and have achieved an annualized return of 9.6% since the plan’s inception in 1990. At Ontario Teachers’, we don’t just invest to give back, we invest to shape a better future for the teachers we serve, the companies we serve, and the world we live in. For more information, visit otpp.com and follow us on Twitter@OtppInfo.
For more information:
Ontario Teachers’ Pension Plan
Phone: +1 416-419-1437