Stewardship | ~ 4 min read

The power of difference

There is ample academic research showing that diverse leadership teams make better business decisions. While the benefits are clear, we still see significant room for improvement on this issue at the executive level and below, particularly in Germany.

European Central Bank (ECB) research shows that banks with more gender-diverse boards provide less credit to “browner” – high-emitting – companies, supporting the transition to a carbon-neutral economy.1 Regulation is also driving greater gender diversity of boards.2 Moreover, the ECB, in its supervisory capacity, has included gender diversity in its guide on fit and proper assessments for banks’ top managers since 2021.


Germany trailing other European countries

Our analysis at the end of August 2023 shows on average 39% of supervisory board members of DAX 40 companies3 are women. However, on average only 22% of management board members are women, and only one company has a female CEO. Across the MDAX , the proportion of women at the executive level is even lower: 15.6% of management board members are women, with not a single female member on almost half of the boards.


Collaborative engagement

Increased gender diversity is an engagement priority which has led us to co-found and co-chair the 30% Club Germany Investor Group. This mirrors our active stewardship stance in France where we currently co-chair the 30% Club France Investor Group.

With our co-founders of this new Investor Group – Amundi, Candriam, Columbia Threadneedle Investments, Legal & General Investment Management, and Sycomore Asset Management – we are calling on German companies to demonstrate higher commitment to the advancement of women on executive boards. We will collaboratively engage with DAX 40 and MDAX companies on this issue with the expectation for executive management teams of DAX 40 companies to attribute at least 30% of management board seats to women by 2030.


Regulation is not enough

With the FührungsPositionenGesetz (FüPOG II), the German government introduced a law requiring companies to appoint at least one woman to management boards of more than three members. While this will advance gender diversity, and initial improvements are already visible, we expect further progress to take time compounded by this law not being applicable to all DAX-listed companies. Therefore, we believe constructive investor engagement with portfolio companies is key to advancing gender parity.

Learn more about our focus on gender diversity as an engagement priority in this short video 

1 European Central Bank, October 2022, Gender diversity in bank boardrooms and green lending: evidence from euro area credit register data (europa.eu)
2 For example, the Women on Boards Directive adopted by the European Parliament and the European Council in November 2022
3 The DAX is a stock market index consisting of the 40 major German blue-chip companies and the MDAX includes the the 50 Prime Standard shares that rank in size immediately below the companies included in the DAX index.

Recent insights

Biodiversity | ~ 3 min read

Since February, developers in England have been required to deliver a minimum 10% biodiversity net gain from projects. What will this mean?

Discover more

Biodiversity | ~ 3 min read

Global cocoa prices have reached unprecedented levels, reflecting challenges faced by the cocoa industry. Can our Easter chocolate become more sustainable?

Discover more

Sustainability | ~ 3 min read

Regulatory definitions of sustainable investments have left the door open for different interpretations.

Discover more
  • Disclaimer
    Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security.

    The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted.

    This material has not been reviewed by any regulatory authorities. In mainland China, it is for Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations and is for information purpose only. This document does not constitute a public offer by virtue of Act Number 26.831 of the Argentine Republic and General Resolution No. 622/2013 of the NSC. This communication's sole purpose is to inform and does not under any circumstance constitute promotion or publicity of Allianz Global Investors products and/or services in Colombia or to Colombian residents pursuant to part 4 of Decree 2555 of 2010. This communication does not in any way aim to directly or indirectly initiate the purchase of a product or the provision of a service offered by Allianz Global Investors. Via reception of this document, each resident in Colombia acknowledges and accepts to have contacted Allianz Global Investors via their own initiative and that the communication under no circumstances does not arise from any promotional or marketing activities carried out by Allianz Global Investors. Colombian residents accept that accessing any type of social network page of Allianz Global Investors is done under their own responsibility and initiative and are aware that they may access specific information on the products and services of Allianz Global Investors. This communication is strictly private and confidential and may not be reproduced, except for the case of explicit permission by Allianz Global Investors. This communication does not constitute a public offer of securities in Colombia pursuant to the public offer regulation set forth in Decree 2555 of 2010. This communication and the information provided herein should not be considered a solicitation or an offer by Allianz Global Investors or its affiliates to provide any financial products in Brazil, Panama, Peru, and Uruguay. In Australia, this material is presented by Allianz Global Investors Asia Pacific Limited (“AllianzGI AP”) and is intended for the use of investment consultants and other institutional /professional investors only, and is not directed to the public or individual retail investors. AllianzGI AP is not licensed to provide financial services to retail clients in Australia. AllianzGI AP is exempt from the requirement to hold an Australian Foreign Financial Service License under the Corporations Act 2001 (Cth) pursuant to ASIC Class Order (CO 03/1103) with respect to the provision of financial services to wholesale clients only. AllianzGI AP is licensed and regulated by Hong Kong Securities and Futures Commission under Hong Kong laws, which differ from Australian laws.

    This document is being distributed by the following Allianz Global Investors companies: Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors (Schweiz) AG; Allianz Global Investors UK Limited, authorized and regulated by the Financial Conduct Authority; in HK, by Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; in Singapore, by Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; in Japan, by Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424], Member of Japan Investment Advisers Association, the Investment Trust Association, Japan and Type II Financial Instruments Firms Association; in Taiwan, by Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan; and in Indonesia, by PT. Allianz Global Investors Asset Management Indonesia licensed by Indonesia Financial Services Authority (OJK).

    3222302

Allianz Global Investors

You are leaving this website and being re-directed to the below website. This does not imply any approval or endorsement of the information by Allianz Global Investors Asia Pacific Limited contained in the redirected website nor does Allianz Global Investors Asia Pacific Limited accept any responsibility or liability in connection with this hyperlink and the information contained herein. Please keep in mind that the redirected website may contain funds and strategies not authorized for offering to the public in your jurisdiction. Besides, please also take note on the redirected website’s terms and conditions, privacy and security policies, or other legal information. By clicking “Continue”, you confirm you acknowledge the details mentioned above and would like to continue accessing the redirected website. Please click “Stay here” if you have any concerns.