ASIFMA–Egon Zehnder Diagnostic
2021 Diversity and Inclusion Ambitionsand Practices in APAC

HONG KONG Unit 3603, Tower 2, Lippo Centre, 38 Queensway, Hong Kong | SINGAPORE One Raffles Quay, North Tower, Level 49, Unit 51B, Singapore 048583
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Background and Purpose of this Project
The ASIFMA Board and Diversity Working Group have been discussing ways to increase diversity in the industry. Egon Zehnder wasdelighted to be asked to work with ASIFMA to deliver a Diversity & Inclusion (D&I) baseline diagnostic for its members across the region.

Set the D&I ambitionBenchmark

or the industry by defining strategic priorities,targets, and aspirations as well as identifying
opportunities for greater collaboration and how
ASIFMA can support its members

the current state of play in D&I in the industry:areas where members have made greatest
progress and areas that are proving the mostchallenging

Gather and distributebest practices

Enable actionable outcomesof activities driving the D&I agenda in theindustry. Sharing examples and solutions that have
had the biggest impact so far

at an individual and collective level, such as
Industry Pledges or D&I roadmaps to mobilize
the collective problem-solving ability within thecapital markets industry in the region

2Scope and Contents of the D&I Survey
The D&I baseline diagnostic was:

Sub- Themes

SectionMulti-Dimensional
Looks beyond gender toexplore other aspects ofdiversity

Overview &profile• Introduction• Outline of content• Participationconsent• Responder profile

Multi-Geography
Covers global, regional, andmarket activity

Strategy• Current D&I
strategy• D&I commitments• Priority areas e.g.
target diversity
groupsLeadership• Who leads on D&Iand who else isinvolved• Internalorganization of
D&I activities• Communication
about D&I
• Accountability &measuringoutcomes

Comprehensive
Looks at policies, targets,metrics, initiatives and future
ambitionsBaseline &activities• Diverse workforce– current baseline
and processes• Inclusive culture processes andactivities• Client impact –products orservices• Social impact –society andcommunity
engagement

Confidential
Responses are anonymous(apart from pre-agreed bestpractice examples)

Progress &challenges• Learnings andprogress• Roadblocks

Industrycollaboration• Potential forindustry-wideaction• ASIFMA’s role

The survey was conducted in May-June 2021
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The D&I Journeys within the Capital Markets Industry
in Asia are mature and well developed• We received a broad range of submissions from top tier banks and selectedasset managers. These responses provided rich information and excellent
examples of ways to further drive progress in D&I• This report shows a range of D&I strategies adopted by ASIFMA members who
have been on the D&I journey already for some time: they have all integrated
D&I in their talent strategy, and sometimes even in their broader businessstrategy

27%

Types ofRespondents
73%• The respondent set is slightly skewed towards large, multi-national financial
services institutions, who are leading the way on D&I• Nevertheless, the examples from the respondents enrich the D&I perspectives
for all members, however advanced in their journey

How advanced is your D&I journey in the APAC region?
110%

10%

20%

30%

340%

50%

60%

70%

80%

Bank

Asset Manager

Respondent companies havetotal market capitalisation ofover USD 645.998 bn and over246,748 staff based in APAC

0 1

90%

100%

Global headquarters include
the USA, Europe, and APAC.

Advanced: D&I treated as a business and organizational issue to engage all employees
Intermediate: D&I treated as a talent issue and focused on diverse workforce
Early: D&I treated as a compliance issue and D&I strategy is reactive
Don't know
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D&I has moved from the HR Agenda to the CEO Agenda• Inclusion is now part of the corporate value system, and diversity
empowers inclusion• Having a good D&I strategy is perceived to be critical to win the ‘war forthe best talent’• D&I importance is further enhanced by the benefits it brings to meetingcustomer expectations, enhancing external reputation and supportingclient service…all of these are reported more frequently by members
who are more advanced on their D&I journeys• While 20 years ago D&I activities were limited to markets where thetopic gained higher place in the social agenda (e.g. the US), now
organizations appreciate that the same value systems should apply to allmarkets, incl. APAC

• ESG commitments made by many global ASIFMA members are raising
the importance of D&I agendas. Also, learnings from D&I journeys areproving very beneficial for ESG progress

93% said:

93% said:“Inclusion is ‘to a large extent’ astated value for theirorganization”“The stated objective of our D&I
strategy is to attract and retain thebest talent wherever they are”

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… and yet there is plenty of room to improve
Even the most advanced members see significant
additional potential in D&I investments

Women in Leadership today and stated goals …

14-25%• Current reality is still far off from self-imposed targets
and pledges; even gender diversity is not yet fixed after
decades of investments• The D&I journey consistently starts with gender,
followed by LGBTQ+ and people with caring
responsibilities• While members feel that the D&I strategies areprogressing well internally (building diversity andinclusion inside the organization), the same cannot be
said on the external side, i.e., deploying D&I strategies tobenefit clients and societies overall

35-40%

Target by 20232025 at seniorlevel

Progress in D&I programs for...

87%

Women inleadership

73%

LGBTQ+

47%

People withcaringresponsibilities

Less than

Other (generational,ethnic minorities,disabled workforce,religious minorities)• However, half of the respondents are making only earlysteps or are yet to take the first step with plans tosupport an ethnically diverse, disabled or older
workforce

Women at MD
level today

30%

Progress in D&I initiatives …

85%

Diversity
workforce

93%

Inclusive culture

54%

Client impact

50%

Social impact
6The top challenges for D&I progress within in the industry
are all linked to social culture that are best tackled
collectively
Concerns about sensitivity and confidentiality arounddata, metrics and measurement can lead to a risk
averse approach to D&I

Learning how others have mitigated these risks could
help make the case and unblock barriers internally

D&I Best Practices remain under development and it’s
not one size fits all

Surveys like this highlight what a good roadmap mightlook like and facilitates sharing of best practice ideas

The top challenges for D&I progress are linked to social
culture that are best tackled collectively

ASIFMA can play a role as a powerful and influential
voice to advocate for improved regulatoryenvironments to support career opportunities forunder-represented talent pools

86%

72%

72%

50%

reported“Culturalpressure formothers to stayat home”

reported“Cultural bias
against people
with disabilities”

reported“Cultural bias
against people
who identify asLGBTQ+”

reported“Diversityperceived as ‘niceto have’, and not‘must have’

The report includes casestudies and examples of bestpractices, highlighting theprogress respondents aremaking in their D&I journey.
It identifies which solutions
have had the biggest impact
so far and will help tofacilitate learning amongst
ASIFMA members

7Key takeaways
It requires leadership
D&I must be a top priority for the C-Suite. The CEO and business leaders need to show real commitment and dedication. This is not a siloed HR issue – it isa business imperative. D&I requires dedicated resources to build and maintain momentum. Find ways to empower colleagues throughout theorganization to drive progress

It is a journey
Organizations often start by focusing on gender, then LGBTQ+, then those with caring responsibilities before targeting other diversity aspects. Most
activity starts internally before growing to encompass external factors too. You don’t have to tackle everything at once. It is a journey and not one size fitsall

It can be done
The important thing is to start and to keep going. There will be barriers and challenges, however they can be overcome through collaboration, learningfrom others, and thinking creatively to identify what works for your organization. Develop a robust strategy and commit to action. This is the time!
GenderCarers
Other diversity aspects

LGBTQ+

Inclusive culture
Diverse workforce

Internal

Social impact
Client impact

External8