For the last decade, the Australian Institute of Company Directors (AICD) has pursued a national campaign targeting ASX 200 and 300 companies to achieve, firstly, 30 per cent female board representation and more recently a minimum 40 per cent.

In partnership with the women’s leadership advocacy group 30% Club Australia and key players in the ecosystem – ASX chairs, institutional investors, executive search firms, professional services organisations, investment bankers and private equity – they have succeeded in moving the needle.

The AICD’s most recent quarterly Gender Diversity Progress Report includes the significant result that 40 per cent of board seats in the top 20 ASX listed companies are held by women.

Additionally, the ASX 300 recorded an all-time high of 35.6 per cent of female representation. But still, 11 boards have only men and another 33 have only one woman. For perspective, that equates to almost one in seven.

South Australian companies, in the main, reflected these figures.

Top 20 listed Santos has 40 per cent female representation and of ASX 300 companies (as included in the report) Elders has 60, Cooper Energy 57, Adbri 43, Codan 40, Mayne Pharma 38, Beach Energy 33, Argo Investments 29, Kelsian Group 29 and Renascor Resources 0 per cent of board seats held by women.

A review of company websites reveals that the remaining ASX-listed ones that also ranked in the 2022 South Australian Business Index performed poorly. Only Silk Laser, Maggie Beer Holdings and LBT Innovations exceeded a 30 percent score, while many had all-male boards.

AICD state manager SA Pasqui D’aloia said despite the considerable gains over the past decade, “we have to recognise that progress is fragile”.

“In 2021 for example, the AICD reported no all-male boards in the ASX 200 but since then we’ve seen them creep back in,” said D’aloia.

Underpinning the AICD’s campaign has been a multi-layered program to influence change. This has encompassed targets, reporting, research and thought leadership, as well as programs to develop a pipeline of talent.

These include scholarships targeting under-represented cohorts, such as women in regional, rural and remote Australia, supported by the Australian Government’s Office for Women.

The institute supports a target of 40:40:20 (male:female:flexible) and this has also been taken up by the Australian Council of Superannuation Investors (ACSI).

ACSI has initiated a gender diversity voting policy for ASX 300 boards with less than 30 per cent female representation.

Pressure applied by the investor community has contributed to this minimum benchmark being adopted by more companies in the last decade.

“Over this time, the case for diversity has evolved from one of equity and social justice to being recognised as a critical non-financial risk for organisations,” D’aloia said.

“But there’s further to go and investors have sent a clear message to corporate Australia that investment decisions will be influenced by performance on diversity, inclusion and broader issues.

“There is no shortage of talented and experienced women in Australia that can be recruited to the board level as evidenced by the appointment rate of women to the ASX 300.

“The AICD urges companies – public and private – to use each appointment as an opportunity to shift towards a sustainable model of equality with the aim that women are represented across every level of leadership.”

Research increasingly highlights the financial rewards of diversity. Bankwest Curtin Economics Centre and Workplace Gender Equality Agency’s Gender Equity Insights 2020: Delivering on Business Outcomes reveals a strong causal relationship between an increase in the number of women in key decision-making positions and subsequent improvements in company performance.

“Advancing workplace diversity starts at the top with a gender-balanced board. And we know that different perspectives and experiences on the board are more likely to generate the right questions being asked of management,” D’aloia said.

“This in turn promotes systems and policies that support women’s progression to leadership roles in c-suite and executive positions.”

While the AICD believes boards should set their own targets for gender diversity, D’aloia said these should be backed by intent and action.

“Targets need to be supported with clear strategies and initiatives to ensure action and sustainability, rather than being a stopgap solution to comply with a mandated requirement,” she said.

For those companies significantly behind in the move to gender parity, she provided a starting point and a caution.

“Boards need to be aware of systemic factors that can feed into inequality and prevent women progressing to leadership roles, including workplace sexual harassment, culture and inclusion, and succession planning and the talent pipeline.

“Without greater diversity on boards and in executive ranks, businesses need to consider if they’re making fully informed decisions that truly represent the market.”

The AICD is one of the sponsors of the South Australian Business Index 2023. This year’s ranking of the top 100 local companies will be announced at the lunch on Friday, October 20 at Adelaide Convention Centre.

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