SDG AMBITION B E N C H M A R K R E F E R E N C E C O N S U LTAT I O N D R A F T In partnership with: BENCHMARK GENDER BALANCE AT ALL LEVELS OF MANAGEMENT SDG IMPACT TIMELINE 2030 SCOPE Operations Products & Services Value Chain 1, 4, 8, 10, 16 Benchmark Information BUSINESS IMPACT ON GENDER BALANCE IN LEADERSHIP The gender balance at all levels of management benchmark helps Despite progress, women remain critically under- organizations assess and achieve gender equity at all levels of leadership. represented in decision-making roles. Target Gender Achieving this benchmark calls for a range of actions to create inclusive Equality, a UN Global Compact Impact Initiative, calls on and supports companies to set and meet ambitious workplaces. It requires business to address key barriers to women’s targets for women’s representation and leadership in participation in the labour force and create an inclusive workplace where business. Additionally, the Women’s Empowerment all employees are respected and empowered. In addition to recruitment Principles (WEPs), outline business policies and targets, establishing gender balance goals for managerial positions greatly practices to level the playing field through gender- enhances overall gender balance metrics. While SDG 5.5 calls for women’s sensitive recruitment and retention, equal pay, equal access to training, networking and mentorship full and effective participation and equal opportunities for leadership, opportunities, support for working parents and including in economic life, by 2030, companies are encouraged to set more caregivers and establishing a zero-tolerance policy ambitious timelines to achieve gender balance in management. against violence and harassment at the workplace. Thousands of companies have signaled their Business leaders increasingly report that gender equality is a priority, yet support for the WEPs by signing the CEO Statement less than 30 per cent of companies have set time-bound, measurable goals of Support. and targets.1 By setting ambitious targets and taking action to achieve gender balance in business leadership, companies directly contribute to the achievement of Global Goal 5: Gender Equality. 7% of Fortune 500 companies are led by women3 Further, a growing body of evidence supports the link between greater gender diversity and improved environmental, social and governance (ESG) performance. For example, one study found that having more women in business leadership is associated with reduced greenhouse gas emissions, 17% of board seats globally are held by women in 2020 4 stronger worker relations and reduced incidence of fraud.2 Among other things, in order to attract and retain top female talent, businesses must focus on pipeline development, hiring and promotion, 22% women are 22 per cent less likely to reach manager level or above, compared to men5 adoption of inclusive workplace policies and performance reward structures, elimination of sexual harassment, and offering equal pay for work of equal value. Illustrative Industry Impact Industrial Goods & Services: According to the the World Economic Technology: Today, just 26 per cent of the computing workforce and Forum (WEF), women’s representation in this sector is just 16 per cent.6 11 per cent of global tech industry leadership is female.7 Adopting flexible However, there has been a steady increase in the share of female work times, maintaining robust employee networks, and investing in talent — women now make up the majority of the college-educated work- personal development programs can create inclusive pathways to achieve force. Industry leaders must continue to work to make STEM careers more gender balance in the technology sector.8 attractive to female talent and adopt more inclusive workforce cultures. G E N D E R BA L A N C E AT A L L L E V E LS O F M A N AG E M E N T R A I SING AMBITION BU S I N ESS I N T EG R AT I O N COMPANIES TAKING ACTION UNILEVER ACCENTURE PVH achieved their target of 50 per set bold goals to accelerate gender has set 2030 targets for women’s cent of women at management equality. It is on track to achieve empowerment and inclusion and and leadership levels globally. A a gender-balanced workforce by diversity that include gender parity in dedicated Diversity & Inclusion team 2025 — one that is equally 50 per leadership positions, professional de- has implemented a Global Diversity cent women and 50 per cent men for velopment opportunities for 500,000 Board and a network of nearly 100 those whose gender is binary — and to women in their supply chain, and “Diversity & Inclusion Champions”, grow percentage of women managing universal unconscious bias training.11 who have set the benchmark for how directors to 25 per cent by the end a community can power an inclusive of 2020.10 culture across markets.9 Assessing Against the Benchmark PRELIMINARY ACTIONS Performance on the benchmark — achieving gender balance at all levels of Secure top level support for gender equality: management by 2030 — can be assessed in line with the objectives of UN For example, signing the CEO Statement of Support for the Women’s Empowerment Principles Women, Women’s Empowerment Principles and the Target Gender Equal- sends an important signal to your employees and ity Initiative. Research by the WEF indicates that at the current pace, it will other stakeholders that gender equality is a priority take 257 years to address the economic gender gap.12 However, establish- and can help establish buy-in from leaders across ing clear goals for achieving gender balance at leadership positions can the organization to take action. have a profound impact: having at least one woman in senior leadership Performance analysis: Assess your company’s increases the proportion of women rapidly advancing13 in organizations by gender equality performance on a regular basis 23 per cent.14 Business that have not established time-bound, measurable to take stock of progress towards women’s equal goals and targets for achieving gender balance at all levels of management representation and leadership and identify would fall below the SDG Ambition Benchmark. potential barriers and opportunities to accelerate the pace of change. The WEPs Gender Gap Analysis Tool is a free, confidential, online and user-friendly diagnostic tool available at https:// weps-gapanalysis.org/ Business Value Companies that strive towards gender balance report higher profitability. For example, achieving 30 per cent female representation in leadership has shown to increase profitability by 15 per cent.15 But KEY RESOURCES other business value drivers make a compelling case for adopting this target as well. Visibly diverse workforces signal attractive workplace UNGC: Target Gender Equality environments, which can translate to increased retention and leadership WEP Gender Gap Analysis Tool aspirations. Accenture research found that creating a culture of equality World Economic Forum Gender Parity would help women feel that they are a key member of their team, increase their retention and inspire ambition in women to reach a leadership position.16 As consumers have clamored for better representation of women in leadership roles, brands face a high reputational risk and possible legal action if they do not prioritize gender balance and ensure non- discrimination. In the United States in 2019 alone, more than 25,000 gender discrimination complaints were lodged.17 G E N D E R BA L A N C E AT A L L L E V E LS O F M A N AG E M E N T R A I SIN G AM BITION B U S I NESS I NTEGR ATI O N INTEGRATION COMPLEXITY* C-SUITE OWNERSHIP Chief Human Resources Officer Understanding Integration Journey towards Integration Business integration of this benchmark means Leading Human Resources (HR) systems and tools on addressing the barriers and challenges to gender the market today have the capabilities to integrate this balance in management positions of the organization. benchmark into core business. By pairing new processes Companies must create wholesale transparency over with specific functional design and activation (e.g. direct indicators of gender imbalance such as headcount, learning and recruiting) companies can enhance their compensation and the recruitment pipeline. To drive monitoring of challenge areas and drive action towards meaningful action, businesses must design systems gender balance. Business leaders should engage their to track harder-to-measure barriers to balance, such technology partners to pursue integration goals, such as: as unconscious bias and structural inequality. It is important to acknowledge that AI and other technologies can unintentionally reinforce biases, making strategic Real-time transparency decision-making with regards to integration essential. Creating a full and accessible view of gender diversity and equality based on real-time data. Illustrations of Integration Prediction and management of biases FLEXIBLE WORKING ARRANGEMENTS Ensuring that data science and analytics identify sources of bias and track indicators, enabling real- Going beyond policy creation and offering benefits, time adjustments. companies need to measure uptake of flexible work plans and the culture change around them, such as existing stigmas against men taking parental leave. Research highlights that only 34 per cent of organiza- Impact measurement and continuous tions train managers to support employees to utilize improvement flexible work arrangements, meaning many still lack the Tracking success of initiatives and identifying opportu- confidence to use them.18 Companies can use systems nity areas to further drive workforce gender balance. to track uptake and perception of these policies to drive increased adoption and usage of these offerings in light of the significant impact they can have on gender balance for a business. INTERVIEW PANELS 58% 42% Efforts to recruit more women can be impaired by Only 58 per cent Only 42 per cent existing structures of bias such as majority male of organizations of workers in interview panels. Systems have the capacity to diversify in the U.S. track Europe make use interviewers through automated selection and analysis hires, promotions of flexible working of the employees selected by those individuals, which and exits by offerings can have a large impact on recruitment balance. At Cisco, gender20 for example, diverse interview panels increased the odds of making it through the interview process by 50 per cent for Hispanic women and 70 per cent for African- *See more in SDG Ambition Integration Guide chapter on Preparing for Integration American women.19 G E N D E R BA L A N C E AT A L L L E V E LS O F M A N AG E M E N T R A ISIN G AM BITION B U S I NESS I NTEGR ATIO N SDG AMBITION APPROACH VIEW THE Example detail below follows the approach outlined in the SDG Ambition Integration Guide INTEGRATION GUIDE and supports ideation for benchmark integration. RAISING AMBITION IDENTIFY RELEVANT BENCHMARKS BASED ON PRIORITIES NEW GOAL IN LINE WITH BENCHMARK’S LEVEL OF AMBITION PATHWAYS WORKFORCE EQUALIZATION RETENTION & PROGRESSION RECRUITMENT Analysis of existing compensation structures Focused talent management efforts to retain Increase gender equal pipeline through and packages, and executing equal pay for and reward employees without strategic recruitment campaigns application equal work discrimination or bias and interview decision making EXAMPLE ACTIONS Mandate Conduct Establish Implement Deliver Create Implement require- Invest in pipeline equal pay for annual reporting/ policies that employee initiatives ments for gender development and equal work compensa- remediation address training on encouraging diversity in candidate training to increase by creating tion and processes systemic inclusion progression pools and interview female talent pool a dedicated opportunity for breach barriers to and gender (e.g. panels especially in certain corporate review and of protocols inclusion (e.g. equality, from leadership fields such as STEM policy accredited flexible work leadership programs) audit plans) down GOALS Increase headcount gender diversity by SUB Eliminate gender pay gap Increase in recruitment balance level and function Fundamental: Salary and bonuses by Fundamental: Promotions by level by gender; Fundamental:Applications by level by Employee turnover by category gender; New recruits by level by gender METRICS* level by gender Aspirational: Employee benefits by gender Aspirational: Flexible work plans by gender; Aspirational: Interview panel composition; and geography (e.g. health insurance, Hours of I&D gender training; Employee value Candidates interviewed by gender; Investment subsidized transport etc.) by training in external training PROCESSES BUSINESS HUMAN RESOURCES TIME & EXPENSES (T&E) TRAINING & CORPORATE MARKETING / PAY-AS-YOU-EARN DEVELOPMENT CITIZENSHIP (PAYE) INTEGRATING AND VISUALIZING CHALLENGING BIASES IN TALENT TARGETING RECRUITMENT OPPORTUNITIES HOLISTIC COMPENSATION GAP MANAGEMENT & STRUCTURE ACTIVITIES FOR BALANCE Employee compensation data (e.g. salary, New processes and analytics tools to track “Recruiting” functionality in core HR SYSTEM bonuses, benefits) likely to be fragmented possible sources of bias (e.g. review panels, systems enable businesses to track data across different systems. HR software uptake of flexible work plans) and leveraging related to recruitment efforts, including solutions can pull into cohesive data set. learning systems to gain visibility over community engagement (external training, employee decisions and possible progress marketing) to monitor impact of actions KDD1 KDD2 KDD3 KEY DESIGN DECISIONS (KDD) How might you create a holistic How might you automate the assessment How might you optimize recruitment and real-time view of employee of bias across the business? efforts to increase pipeline diversity? compensation? Creation of processes and systems to track Building systems to identify and optimize The definition of the applicable data activities in areas where biases exist (e.g. recruitment activities for increasing female structures and the right level of details will gender balance on panels, employee engage- applicants. This includes appropriate mapping provide the ability to understand employee ment with unconscious bias training) to inform of recruitment initiatives, like career events, total benefits (not just salary) and identify if impactful decision making and adjustments to to ensure impactful employee engagement compensation and leadership gaps exist. current initiatives. tracked in the system. BUSINESS INTEGRATION * All KPIs and metrics listed are directional, drawing on existing reporting standards. Each organization should adopt goal-setting measures aligned to their reporting methodologies and business context. G E N D E R BA L A N C E AT A L L L E V E LS O F M A N AG E M E N T R A I SIN G AM BITION B U S I NESS I NTEGR ATI O N BUSINESS SYSTEMS DESIGN How might you KDD1 How might you KDD3 create a holistic optimize recruit- and real-time INTEGRATION COMPLEXITY ment efforts to INTEGRATION COMPLEXITY view of employee increase pipeline PEOPLE PEOPLE compensation? PROCESS diversity? PROCESS TECHNOLOGY TECHNOLOGY Tracking gender balance requires Pursuing gender balance multiple metrics, with the neces- demands investments in sary data points often found across different business recruitment and pipeline development, ranging from systems. Headcount data (turnover; promotion) is likely to skill development (e.g. women’s initiatives) to targeting be held on central HR systems, whilst compensation data specific applicant pools (e.g. on-campus associations). (salaries; bonuses; benefits) can be siloed on payroll or Just like any business initiative, the impact of these time and expense platforms. activities can be measured. Blizzard Entertainment, the video game publisher behind World of Warcraft, was Enterprise software tools embedded with analytics capa- able to increase its number of female interns by 166 per bilities can enable companies to intelligently combine data cent by reaching out to on-campus women-led groups sets to gain a more real-time, granular view of employee such as the “Women in Computer Science” club.22 data and visualize them in accessible dashboards. Businesses can leverage recruiting modules in their core HR systems to focus outreach in these ways and track impact, as well as additional key indicators such as the How might you KDD2 gender balance of employee representatives at career automate the events. Companies should work with their technology partners to design intelligent systems that can identify assessment and INTEGRATION COMPLEXITY opportunities such as women-led groups and assess their management PEOPLE potential return on investment through driving greater of bias across PROCESS gender balance. the business? TECHNOLOGY 1 The Women’s Empowerment Gender World Economic Forum Gap Analysis Tool, UN Global Compact Many barriers to gender balance in et al 13 “Fast-track” rapid advancement is considered if typically reaching an organization are cultural and structural, and therefore 2 IFC manager level within five years in terms of advancement in the workplace 3 “The Fortune 500 has more female won’t be highlighted by traditional HR indicators. These CEOs than ever before,” Fortune, 2019 14 When She Rises, We All Rise: Getting to Equal 2018: Creating a culture where include unconscious bias in talent management and job 4 Women on Corporate Boards: Quick everyone thrives, Accenture Take, Catalyst, 2020 descriptions, differing standards and expectations in 5 Global Gender Gap Report 2020, World 15 Study: Firms with More Women in the C-Suite are More Profitable, Harvard work patterns and parental leave, and alienating work- Economic Forum Business Review, 2016 The Future of Jobs, World Economic place cultures. 6 Forum, 2016 16 The Hidden Value of Culture Makers, Accenture, 2020 7 Closing the tech gender gap through 17 Sex-Based Charges, 1997–2019, Companies and platform providers can identify and ad- philanthropy and corporate social U.S. Equal Employment Opportunity responsibility, McKinsey & Company, Commission dress such barriers through machine learning. AI powered 2018 18 When Women Thrive 2020, Mercer tools can identify biases in language of job postings and 8 Creating a culture of equality in the workplace, Accenture 19 Diverse Representation Framework & performance management and suggest alternatives.21 9 Advancing diversity and inclusion, Diverse Interview Panels , CEO Action Unilever 20 When Women Thrive 2020, Mercer Intermediary process steps can be taken among smaller 10 Accenture 21 Textio Hire 11 PVH Announces Forward Fashion, 22 Harvard Business Review businesses such tracking interviewer diversity and PVH, 2019 employee engagement in unconscious bias training. 12 The Global Gender Gap Report, 2020, G E N D E R BA L A N C E AT A L L L E V E LS O F M A N AG E M E N T SDG AMBITION B E N C H M A R K R E F E R E N C E C O N S U LTAT I O N D R A F T In partnership with: BENCHMARK NET-POSITIVE WATER IMPACT IN WATER-STRESSED BASINS SDG IMPACT TIMELINE SCOPE Operations Products & Services Value Chain 11, 12, 13, 14, 17 50% by 2030 100% by 2050 Benchmark Information BUSINESS IMPACT ON WATER Business is the largest user of water as nearly all Adopting this benchmark helps business assess their water use operations and supply chains rely on access to water. and deliver net-positive water impact, especially in high water- 45 per cent of companies report exposure to risks from stressed areas, defined by WRI as an area where 40 per cent or water insecurity estimated at over US$ 425 billion.3 More than 175 companies endorse the CEO Water more available supply of water is withdrawn each year. This SDG Mandate to address global water challenges through Ambition Benchmark provides business with the strategic insights corporate water stewardship, in partnership with the UN, governments, civil society organizations and and technical know-how to assess their freshwater impact across other stakeholders. The Mandate’s Water Resilience its availability, quality and accessibility. It advocates for businesses Coalition is an industry-led initiative focused on to move beyond operational to measurable improvements of ambitious commitments and collective action. watersheds in proportion to their local water use and economic impact in support of Goal 6: Clean Water and Sanitation. Companies must set targets for direct operations water use in the short term, 59% of water is for industrial use in high-income countries supporting a pathway to 50 per cent fulfillment by 2030 and 100 per cent fulfillment of net-positive water by 2050. 70% of global freshwater use is agricultural 25% of CDP respondents experienced detrimental impact of water stress in 2016 Assessing Against the Benchmark Performance on the benchmark — sustainable withdrawals and supply of freshwater by 2030 — can be assessed in line with the ILLUSTRATIVE INDUSTRY IMPACT United Nations SDG 6, “Clean Water & Sanitation”. The UN Global Agriculture: 70 per cent of global water use is Compact CEO Mandate and the Water Resilience Coalition further attributed to agriculture.4 The agricultural inputs required to produce beverages and food can add advocates for business to achieve net-positive water impact and up to hundreds of gallons of water for each unit of water resilient value chains by 2050.1 As nearly two thirds of global food or beverage produced.5 Improving agricultural freshwater consumption is associated with ingredient production efficiency in water-stressed regions is key to ensuring a continued water supply. for corporate supply chains, companies must extend responsibility Oil & Gas: 19 per cent of global water use is for water consumption across the value chain.2 Businesses that industrial.6 In the oil and gas industry, water is used have not established goals in line with achieving net-positive water during extraction and hydraulic fracturing. Concern- ingly, some of the most water-stressed regions in the operations in water-stressed basins by 2050 as outlined above world are also major producers of oil and gas. Industry would fall below the SDG Ambition Benchmark. leaders must actively manage their water risks to ensure continued production. N E T- P O S I T I V E WAT E R I M PACT I N WAT E R - ST R ES S E D BA S I N S R A I SING AMBITION BU S I N ESS I N T EG R AT I O N COMPANIES TAKING ACTION NOVARTIS LEVI STRAUSS & CO INTEL set a 50 per cent water reduction committed to reducing water use is moving beyond their 2025 target goal by 2025 vs. 2016 levels, moving in manufacturing by 50 per cent by of 100 per cent water restoration, towards water neutrality in all 2025 in areas of water stress against setting a new 2030 goal to increase operations by 2030. They have also a 2018 baseline. Their “Water