Gender Lends Investing
Post G20 Forum SDG x Innovative Finance
Gender lends investing

Minako Takaba, Executive Director
MSCI ESG Research

September 6, 2019, Tokyo© 2019 MSCI Inc. All rights reserved.
Please refer to the disclaimer at the end of this document.

Why Gender Diversity is Relevant for Investors
Average Growth in Employee Productivity by Talent Programs and WOB Group(Constituents of MSCI World Index, January 2018)

Talent Leaders: showed evidence of some best practices of human capital management (such as annualengagement surveys, quantitative diversity targets in the recruitment process, reporting annual training
hours per employee, etc.)

Talent Laggards: No evidence of employee engagement initiatives, plans to improve diversity inworkforce or training or development activities.
WOMEN ON BOARDS AND THE HUMAN CAPITAL CONNECTION (March 2018)

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In Japan, female work participation is high but FEW
women are promoted to manager
Countries’ female work participation rate (%) and % of females in managerial
positions
60%
50%
42%

47%

44%

45%

38%

40%

29%

30%

33%

34%

47%
36%

46%
37%

47%

48%
43%38%

47%

39%

49%
39%

20%

20%
10%

48%

11%

13%0%

Female in managerial position

Female work participation rate

Note: Data for Japan, France, Sweden and Norway are from 2015, ILO STAT; US is data isfrom 2013, ILO STAT; other countries’ data is from 2014, ILO STAT.
Source: Chart from Gender White Paper 2016, Ministry of General Affairs of Japan

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Asset Owners also Promote Gender Diversity in Japan⚫
⚫

% women among new hires% women in the workforce

MSCI JAPAN EMPOWERINGWOMEN
INDEX (WIN) USE CASE

ATTRACTION⚫

⚫
⚫

Years employed bythe company –men vs. womenRETENTIONGENDER
DIVERSITY% women insenior
PROMOTION
management% women onboards• % of quantitative
gender diversity
metrics disclosed⚫ Nomura NEXT Funds WINIndex ETF (supported byBank of Japan)*2⚫ Daiwa ETF MSCI Japan
Empowering Women Index

DISCLOSURE

Performance indicators
Disclosure indicators• Diversity policy• Programs toincrease diversity⚫ GPIF allocated $3.5 billion to
WIN*1

Commitment indicators
POLICY &PROGRAMS⚫ Daiichi Life Insurance-a
privately placed fund forinstitutional investors byMSCI WIN Index*3*1 GPIF update of ESG Index selections as of Sep 25, 2018
*2 Sankei Biz article June 25, 2018
*3 Daiichi Life announcement of launch of WIN index fund http://www.dai-ichilife.co.jp/company/news/pdf/2017_049.pdf

44Gender Diversity Metrics
Change in Median Value of WIN Gender Metrics (2017 vs 2018)30%
20%

25% 28%
17% 19%20172018
10% 10%

10%

4%

5%

0%

-10%
-20%

Women as a % of Women as a % of
new hires
total workforce-17% -17%
Difference in
Women in senior Women as a % of
averagemanagement (%) directors on theemployment years
board
male vs. female(%)

Note: Median value of MSCI Japan Top 500, the universe for WIN Index (as of May 30 2017 and May 302018)
GENDER DIVERSITY IN JAPAN: PROGRESS REPORT 2018 (June 2018)5

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