Diversity in the DACH region: Lots of words, but still too little action
Diversity in the DACH region: Lots of words, but still too little action
Diversity is becoming increasingly important - this has also reached the boardroom. However, the majority of companies still lack appropriate measures to promote diversity in their reporting. This is the conclusion of the first partial study "Diversity: Reporting on diversity" on sustainability reporting in the DACH region (Germany, Austria, Switzerland), conducted jointly by Kirchhoff Consult and BDO AG Wirtschaftsprüfungsgesellschaft.
At 97.5 percent, almost all companies listed in the top indices in Germany, Austria and Switzerland (DAX40, ATX, SMI) show in their annual or sustainability reports that they view diversity as an enrichment and have anchored its promotion in their corporate values. In addition, 82.5 percent of companies state that they have identified diversity (or comparable topics such as equal opportunities or justice) as a material topic in their materiality analysis.
In comparison, however, significantly fewer companies show in their reports that they have dealt with the topic in depth and taken measures to really exploit the potential of diversity and eliminate possible imbalances. At 28.8 percent, only a few of these companies have disclosed gender-specific salary gaps or the so-called "gender pay gap". And only 7.6 percent of all companies examined are taking measures to eliminate it. The peak value of the reported gender pay gaps can be found in the ATX: In this index, one company reported an unadjusted gender pay gap of 39.0 percent.
Diversity is more than a quota for women
86 percent of the companies in the DAX40, SMI and ATX have formulated specific targets regarding the proportion of women in their workforce, which shows a clear commitment to gender diversity. The proportion of women in management positions (Management Board and Supervisory Board) has also continued to increase in all three top indices. In the DAX40, the overall proportion of women on the Management Board rose to 26 percent, compared to 23 percent in the previous year. In the DAX40 supervisory boards, 37.4 percent of members are now female.
Anyhow, few companies have considered all key facets of diversity in their reporting. For example, only 16.3 percent of companies address the topic of neurodiversity in their reports. In areas such as sexual orientation and cultural diversity, on the other hand, discrepancies can be found between a commitment and the actual implementation of measures to promote diversity in these aspects. Nine out of ten of the companies surveyed published qualitative information on cultural diversity, but only 69 percent named corresponding measures. The difference between the qualitative information on sexual orientation (83 percent) and the naming of corresponding measures (61 percent) is even greater.
"Diversity is a potential asset and discrimination is a major value destroyer in companies. In order to leverage the potential of a diverse workforce and effectively prevent discrimination, both are needed: an overview of the specific circumstances relating to diversity aspects in the company and the goals and measures derived from this," comments Jela Bölts, Consultant ESG/Sustainability at Kirchhoff Consult and co-author of the study.
CSRD readiness: almost three quarters of companies are prepared
With the new disclosure requirements of the CSRD [Corporate Sustainability Reporting Directive], companies will be obliged to meet these requirements to an even greater extent in future. "This will at least create more comparability with regard to corporate activities related to diversity. However, we also expect to see more corporate activity to promote diversity in the corporate world," explains Janina Seufert, Manager Sustainability Services at BDO and co-author of the study.
When it comes to CSRD, most companies in the top indices in the DACH region are well prepared: 72.5 percent already define their diversity-related targets according to the criteria of the European Sustainability Reporting Standards - measurable, results-based and time-bound.
Study series on sustainability reporting in the DACH region
This partial study "Diversity: Reporting on diversity" is the first in a series of studies being conducted jointly by Kirchhoff Consult GmbH and BDO AG Wirtschaftsprüfungsgesellschaft. In the series of studies, stock corporations in the top German, Austrian and Swiss indices (DAX40, ATX and SMI) are being scrutinized. The annual and sustainability reports of the 80 leading index companies published up to the reporting date of March 31, 2024 serve as the data basis.
The study examines how the largest stock corporations in the DACH region embed diversity in their corporate structures and what measures they take to promote an inclusive corporate culture. The focus of the study was on the diversity dimensions of gender, age, cultural diversity, sexual orientation, neurodiversity and inclusion of people with disabilities. In addition, the study sheds light on various characteristics of dealing with diversity. These include the gender pay gap, the occurrence and management of discrimination incidents and the organizational anchoring within companies.
All the results can be found here in the full study (only available in German).
At 97.5 percent, almost all companies listed in the top indices in Germany, Austria and Switzerland (DAX40, ATX, SMI) show in their annual or sustainability reports that they view diversity as an enrichment and have anchored its promotion in their corporate values. In addition, 82.5 percent of companies state that they have identified diversity (or comparable topics such as equal opportunities or justice) as a material topic in their materiality analysis.
In comparison, however, significantly fewer companies show in their reports that they have dealt with the topic in depth and taken measures to really exploit the potential of diversity and eliminate possible imbalances. At 28.8 percent, only a few of these companies have disclosed gender-specific salary gaps or the so-called "gender pay gap". And only 7.6 percent of all companies examined are taking measures to eliminate it. The peak value of the reported gender pay gaps can be found in the ATX: In this index, one company reported an unadjusted gender pay gap of 39.0 percent.
Diversity is more than a quota for women
86 percent of the companies in the DAX40, SMI and ATX have formulated specific targets regarding the proportion of women in their workforce, which shows a clear commitment to gender diversity. The proportion of women in management positions (Management Board and Supervisory Board) has also continued to increase in all three top indices. In the DAX40, the overall proportion of women on the Management Board rose to 26 percent, compared to 23 percent in the previous year. In the DAX40 supervisory boards, 37.4 percent of members are now female.
Anyhow, few companies have considered all key facets of diversity in their reporting. For example, only 16.3 percent of companies address the topic of neurodiversity in their reports. In areas such as sexual orientation and cultural diversity, on the other hand, discrepancies can be found between a commitment and the actual implementation of measures to promote diversity in these aspects. Nine out of ten of the companies surveyed published qualitative information on cultural diversity, but only 69 percent named corresponding measures. The difference between the qualitative information on sexual orientation (83 percent) and the naming of corresponding measures (61 percent) is even greater.
"Diversity is a potential asset and discrimination is a major value destroyer in companies. In order to leverage the potential of a diverse workforce and effectively prevent discrimination, both are needed: an overview of the specific circumstances relating to diversity aspects in the company and the goals and measures derived from this," comments Jela Bölts, Consultant ESG/Sustainability at Kirchhoff Consult and co-author of the study.
CSRD readiness: almost three quarters of companies are prepared
With the new disclosure requirements of the CSRD [Corporate Sustainability Reporting Directive], companies will be obliged to meet these requirements to an even greater extent in future. "This will at least create more comparability with regard to corporate activities related to diversity. However, we also expect to see more corporate activity to promote diversity in the corporate world," explains Janina Seufert, Manager Sustainability Services at BDO and co-author of the study.
When it comes to CSRD, most companies in the top indices in the DACH region are well prepared: 72.5 percent already define their diversity-related targets according to the criteria of the European Sustainability Reporting Standards - measurable, results-based and time-bound.
Study series on sustainability reporting in the DACH region
This partial study "Diversity: Reporting on diversity" is the first in a series of studies being conducted jointly by Kirchhoff Consult GmbH and BDO AG Wirtschaftsprüfungsgesellschaft. In the series of studies, stock corporations in the top German, Austrian and Swiss indices (DAX40, ATX and SMI) are being scrutinized. The annual and sustainability reports of the 80 leading index companies published up to the reporting date of March 31, 2024 serve as the data basis.
The study examines how the largest stock corporations in the DACH region embed diversity in their corporate structures and what measures they take to promote an inclusive corporate culture. The focus of the study was on the diversity dimensions of gender, age, cultural diversity, sexual orientation, neurodiversity and inclusion of people with disabilities. In addition, the study sheds light on various characteristics of dealing with diversity. These include the gender pay gap, the occurrence and management of discrimination incidents and the organizational anchoring within companies.
All the results can be found here in the full study (only available in German).