Diversity comes of age as an investment theme

Diversity comes of age as an investment theme allianzgi.com June 2022 The pandemic illustrated the fragility of diversity and inclusion, making it a critical sustainable investment topic. Investors and regulators alike are insisting that companies employ more diverse workforces from the top down. At the same time, investments are emerging that specifically target greater diversity – both within organisations and in wider society. Guirec Thouement The notion of fairness in the capitalist Sustainability economy is gaining ground – including equal Key takeaways: Analyst treatment of individuals, communities and – The Covid pandemic exposed the 1 individual diversity categories. Arguments modern economy’s inequalities, in favour of encouraging diversity are sharpening the focus on social issues nothing new, but the pandemic revealed – Diversity was negatively impacted by the fragility of the prior decades’ apparent the pandemic, but is key to a resilient progress. In this report, we briefly introduce economic recovery and growth diversity’s complex layers and identify – We expect diversity to be increasingly the lessons learned during the pandemic regarding gender diversity – the most measured and integrated into advanced diversity typology. Furthermore, investment decisions, which will be we discuss how investors can integrate reinforced by evolving regulation diversity into investment decisions and – Expanding diversity data will be active asset management. integrated into screening, engagement, Understanding the breadth of diversity voting and investment solutions While articles and reports refer extensively to diversity, equity and inclusion (DEI), it of how the issue of “difference” affects their is often narrowly applied as a concept. behaviour towards, or perceptions of people There is a breadth and depth to diversity, and communities. both in terms of the range of different communities affected and the various To explain DEI’s breadth, the term diversity is issues that impact them. Without education commonly linked to gender, gender identity, and understanding, many people in the ethnicity, age, religion or sexual orientation. broader population may not be aware It also encompasses education, language, 1. Allianz Global Investors, Unlocking the “S” in Capitalism, February 2022 https://www.allianzgi.com/en/insights/ outlook-and-commentary/unlocking-the-s-in-capitalism.