TheBoardroom Africa, Alitheia Capital and the 2X Collaborative have announced the formation of the Board Diversity Charter, an initiative that will combine the power of leading global companies and investors to build and maintain diversity and equity in the boardroom.
Signatories of the Board Diversity Charter commit to maintaining boards of at least 30% women while striving to reach gender parity, the parties disclosed in a statement that announced the formation of the charter on Wednesday, November 10, 2021. The statement indicated that companies that have less than 30% women on their boards but intend to meet this quota within 2 years may also signal their support as Pledge Partners.
“By launching the Board Diversity Charter, we’re telling the world that diversity is not a nice-to-have; It’s a need-to-have. Diversity reflects the reality of our world. A diverse inclusive board, not only sets the tone for management, but also for shareholders, investors, customers, employees, and other stakeholders. The knowledge and skills that diverse candidates can bring are essential to enhancing business performance in an increasingly uncertain world” .
Marcia Ashong, Founder and CEO of TheBoardroom Africa
Founders of the Charter
The initiative was founded by TheBoardroom Africa (TBR Africa) and Alitheia Capital, two women-led organizations committed to advancing outcomes for women in the private sector and business, in partnership with 2X Collaborative, a global industry body that convenes the entire spectrum of investors to promote gender-lens investing.
TheBoardroom Africa is the region’s largest community of board-ready female executives while Alitheia is a gender-lens investing pioneer.
The statement indicated that CDC Group and DEG, two major development finance institutions (DFIs), are among the first organizations to sign on to the Charter. In 2020, CDC Group made £1.22 billion in new commitments to businesses in Africa and has now invested in almost 1,200 businesses that directly employ nearly 952,000 people.
In 2020, companies co-financed by DEG employed over 2.3 million people and generated local income of EUR 120 billion. Both institutions are also inaugural members of Board Diversity Charter partner 2X Collaborative. Other Charter signatories include Norsad Finance, FCMB, Falcon Corporation Limited, The Water Trust, and Woodside Africa Group, among others.
Inaugural Charter Committee
Marcia Ashong, TBR Africa CEO; Tokunboh Ishmael, Founder and Managing Director of Alitheia Capital; and Jen Braswell and Jessica Espinoza, Co-Chairs of the 2X Collaborative, will serve on the initiative’s inaugural Charter Committee.
Tokunboh Ishmael stated that Alitheia is pleased with the launch of the Board Diversity Charter with a focus on diversity in the boardroom where key decisions to drive profitability and sustainability are made.
According to Tokunboh , “this underpins the fact that diversity is both a moral obligation and economic imperative. Serious companies recognize the need to be intentional about diversity for effective decision making, stronger corporate governance and greater innovation to ensure superior returns to all stakeholders.”
On their part, Jen Braswell and Jessica Espinoza, underscored that “studies have repeatedly demonstrated that women directors are key to corporate value creation and innovation. The 2X Collaborative is proud to support the launch of the Board Diversity Charter because boards are at their best when they have a diversity of perspectives represented”.
The Beijing Platform For Action
As the world marks over 25 years since the Beijing Platform for Action, companies and development finance institutions including CDC Group Plc, DEG, and Norsad Finance are taking action to make a meaningful, measurable, and lasting systemic impact on advancing women’s representation in leadership.
These companies annually report on the status of their board composition and aim to broaden women’s equitable participation at all levels of company decision-making while fostering an environment that champions diversity, equity, and inclusion.
Gender diversity on boards is a strategic imperative, as evidence continues to demonstrate that companies with diverse boards enjoy better corporate governance, financial, risk management, and social return outcomes that perpetuate business success. A 2019 study by McKinsey & Company finds that organizations in the top quartile of gender diversity are more likely to outperform on profitability — 25% more likely for gender-diverse executive teams and 28% more likely for gender-diverse boards.
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