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Women and gender
OpinionComment
Kim-See Lim
Kim-See Lim

Macroscope | How stock exchanges can help Asia be a leader on gender equality and diversity

  • Stock exchanges have a critical role to play in convincing companies to support sustainable development and drive inclusive growth
  • Their influence on markets can also help rally the private sector to increase women’s participation in business and close the gender pay gap

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Bonnie Chan, co-chief operating officer of Hong Kong Exchanges and Clearing (HKEX), speaks during a special market closing ceremony on March 8, part of the global “Ring the Bell for Gender Equality” campaign to celebrate the power of diversity and the contribution of women in markets and communities, at HKEX in Central. Photo: May Tse
Kim-See Lim
The clock is ticking on gender inequality in listed companies in Asia. Stock exchanges in Hong Kong and South Korea recently implemented rules to make single-gender boards of directors a thing of the past, joining exchanges such as the National Stock Exchange of India that have similar rules in effect.
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However, the region still lags behind on many gender-related market metrics. Calls for greater diversity from policymakers, regulators, shareholders and civil society will only grow louder as sustainability and inclusion move up the public agenda.

Companies with gender-diverse boards and leadership tend to do better on a range of metrics, both financial and non-financial. Because of that, they can achieve a self-reinforcing momentum when they make improvements on diversity, with each improvement having a flywheel effect that creates significant results over time.

These companies need nudging, though. This is where stock exchanges have a critical role to play. Throughout March, stock exchanges around the world will ring the bell – or strike the gong, in Hong Kong’s case – for the “Ring the Bell for Gender Equality” event.

Held in partnership with the International Finance Corporation (IFC), World Federation of Exchanges, UN Sustainable Stock Exchanges (SSE) Initiative, UN Global Compact and UN Women, this annual event aims to raise awareness about the business case for women’s economic empowerment and opportunities for the private sector to advance gender equality and sustainable development.

Rarely has there been a more opportune time to do so, given the outsize impact a multitude of crises – from the Covid-19 pandemic to climate change – are having on women. It will take another 132 years to close the gender gap, according to the 2022 World Economic Forum Global Gender Gap Report. As crises compound, women’s workforce outcomes are suffering.
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