A recent report has highlighted the ongoing commitment of leading Australian companies to enhance gender diversity within their executive leadership teams (ELTs). Despite global challenges, findings from the survey of signatories to the 40:40 Vision initiative reveal that 41% of these companies have achieved at least 40% women in their ELTs. This is a notable contrast to the broader ASX300, where only 26% meet the same standard.
The report, summarizing responses from 30 companies, indicates that an additional 27% are close to achieving the 40% target, with women constituting between 30% and 39% of their ELTs. Debby Blakey, Chair of 40:40 Vision and CEO of HESTA, expressed satisfaction with the findings. She noted that while progress has slowed, it is encouraging that 95% of surveyed signatories have reaffirmed their commitment to gender diversity, regardless of shifting global conditions.
“The strong conviction among many Australian companies of the value of gender diversity in executive leadership is encouraging,” Ms. Blakey stated. “It highlights the difference in Australia, where we have not given up the critical advances made over recent years.” She emphasized the need to fully realize the benefits of diverse perspectives, which drive innovation, resilience, and sustainable success.
40:40 Vision, established in 2020, aims to improve gender balance in ELTs of ASX300 companies by 2030. The survey revealed that all participating companies believe that increased gender diversity enhances talent attraction, retention, and workplace culture. Furthermore, 91% of respondents acknowledged that it positively impacts business performance.
These findings align with a recent report from the Bankwest Curtin Economics Centre and the Workplace Gender Equality Agency, which noted that companies actively promoting gender equality benefit from lower staff turnover and improved shareholder value. The research highlighted the effectiveness of target setting as a tool for driving progress toward gender balance in leadership roles.
“Gender equality is not just a moral imperative; it’s a strategic one,” Ms. Blakey remarked. “The evidence is clear – companies with gender-balanced leadership perform better, innovate more, and deliver stronger economic outcomes.” She added that targets are crucial for effecting change, praising the signatory companies for not only setting these targets but also achieving interim goals while reaping tangible benefits.
While the report shows improvements in board-level diversity across the ASX300, progress at the executive level lags, with the number of women serving as CEOs remaining stagnant at just 10%. Lisa Annese, CEO of Chief Executive Women, reiterated the necessity for companies to establish clear targets to foster meaningful change.
“This report confirms what we have long known: to improve gender diversity in corporate leadership, companies need more than simply goodwill,” Ms. Annese stated. “They need clear targets tied to genuine accountability.”
The report offers actionable insights for companies looking to enhance gender diversity. Recommendations include prioritizing leadership development and succession planning, addressing the gender pay gap, and implementing strategies to attract and retain diverse talent, particularly in traditionally male-dominated industries.
Moreover, fostering inclusive workplace cultures, providing flexible work options, and creating targeted career programs, such as mentoring for women and underrepresented groups, are also emphasized as key strategies for driving progress in gender balance.
As Australian companies continue to navigate the complexities of gender diversity in leadership, the commitment shown by the signatories of 40:40 Vision serves as a beacon of hope and a model for other organizations aiming for inclusive growth. The path may be challenging, but the findings suggest that a concerted effort can yield significant results in the pursuit of gender balance in executive leadership.
