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Two years after the implementation of the European Directive to promote board director equality 1, BNP Paribas Asset Management ("BNPP AM") publishes the results of its global study on female board membership, highlighting a positive increase compared to the previous year in all regions. However, national disparities persist, and the results vary from country to country.
Ahead of the 2024 annual general meeting season, BNPP AM reiterates its commitment to diversity, one of the pillars of its Global Sustainability Strategy.
Findings
- Women hold, an average, 29% of the board seats at companies in which BNPP AM invests, an increase of 2 points compared to 2022 (27%).
- This compares with an average of 22% for companies in the ISS database also two percentage points higher than in 2022 (20%).
- In all regions, BNPP AM invests in companies with higher gender diversity compared to the ISS data base.
- Despite global progress, geographical disparities persist: Europe, North America, Australia and New Zealand remain the most advanced in terms of board parity in both the BNPP AM portfolios and the ISS universe.
- From 2025, BNPP AM will raise its requirements and increase its minimum threshold to 40% of women on boards in Europe, North America, Australia and New Zealand and South Africa.
Michael Herskovich, Global Head of Stewardship at BNP Paribas Asset Management, comments:
"Gender diversity is increasing globally in all regions. As an asset manager, we have a crucial role to play in advancing the gender balance of decision-making bodies through voting and constructive dialogue. However, disparities remain, and we will continue our efforts to keep promoting gender and broader diversity within the companies we invest in, around the world."
Encouraging results despite disparities between countries
Between 2021 and 2023, the representation of women on boards of directors increased in all regions, both within BNPP AM's portfolios (29% in 2023 vs 25% in 2021) and in the ISS universe (22% in 2023 vs 18% in 2021).
Across the globe, France holds the leading position in terms of women's representation in BNPP AM portfolios (45% in 2023) and in the ISS universe (40% in 2023).
Within BNPP AM's portfolios, the most significant changes were in Asia (14% in 2022 vs. 18% in 2023), Latin America (14% in 2022 vs. 19% in 2023), Australia and New Zealand (35% to 40% respectively). Europe grew by 1% compared to 2022 (37% in 2023 vs. 36% in 2022) and 3% compared to 2021 but is already one of the most advanced regions in terms of female board membership.
However, parity is far from being achieved in Asia, particularly Japan, which has 17% of women across the boards of BNPP AM and 11% in the ISS universe.
Nonetheless, it is important to point out the efforts of some countries to close the gap. India, Malaysia and Singapore respectively include 20%, 33% and 23% of women on the boards of local BNPP AM entities, a higher diversity rate than their neighbours.
In North America, the United States has 33% women directors in the BNPP AM portfolio and 24% in the ISS universe, a slightly lower percentage than required by BNPP AM policy but still way higher than the industry trend.
Johanna Lasker, CEO of BNP Paribas Asset Management, USA, explains:
“Gender diversity on US boards has steadily improved in recent years, although it does not yet meet our standard. Just over half the US population is female. Low director refreshment rates, outdated recruitment methods and an US aversion to setting quotas – or even targets - contributes to the situation. This is not just about setting the right tone and advancing equity in the workplace, it is also about effective risk management. If boards are truly seeking the best and brightest, they should be gender balanced”.
On BNPP AM ambitious voting policy
Since 2019, BNPP AM has applied specific voting criteria on gender diversity regarding the election of directors at AGMs. The requirements have gradually been strengthened, using a regional approach, depending on the degree of maturity of the different countries on diversity issues.  
In 2023, BNPP AM strengthened its voting policy by increasing the minimum thresholds required for women on boards of directors: 35% in Europe, North America, Australia, South Africa and New Zealand and 20% in Latin America, Asia and the Middle East.
In 2023, BNPP AM rejected 48% of board of directors elections on grounds of gender parity.
In addition to voting at AGMs, BNPP AM also conducts ongoing engagement with investee companies. In 2023, out of the 38 companies targeted by BNPP AM on these issues (13 in Europe, 11 in North America and 14 in APAC), 11 of them (29%) adopted changes and increased their female to male directors ratio and reached our gender diversity threshold, and 8 companies (21%) while not yet reaching our gender diversity threshold made important improvement or commitment to reach our 40% in 2025 demonstrating the effectiveness of BNPP AM’s voting policy and engagement.
For 2025, BNPP AM set a threshold of 40% women board membership in Europe, North America, Australia, South Africa and New Zealand.
Methodology
The study compares the 3,250 companies in which BNPP AM invests with around 21,000 listed companies included in the Institutional Shareholder Services ("ISS") database. Data is at the end of December 2023.
BNPP AM’s voting policy requires it to oppose the election of all male directors at AGMs in all markets in 2023 if these requirements are not met.  Exceptions may apply if the percentage of female directors is slightly lower than required (respectively 20-35% and 10-20%) and the company has made significant recent efforts to improve diversity, or has a small board, has had a recent IPO or has a satisfactory ethnic diversity of the board, is committed to reaching the required threshold in a short period of time, or has a female Chief Executive Officer or President.
