Australia has made rare progress on increasing the proportion of women directors in listed boardrooms. New research says the target needs to be 40:40:20.
Australia is one of just three countries in the world to have exceeded 30 per cent women on top listed company boards without mandated quotas. A report from the University of Queensland Business School, Towards Board Gender Parity: Lessons from the past, directions for the future, examined the key moments, bodies and individuals who were central to the 30% campaign and looks ahead to how Australia might achieve board parity in the future. The report was supported by the AICD and the Australian Gender Equality Council (AGEC).
Australia increased the proportion of women on top listed boards from just 8.3 per cent in 2009 to 33.6 per cent as at 30 June 2021. While researchers identified a number of direct and indirect influencers, it highlighted two significant milestones from 2009 as critical in driving change over the decade that followed — the ASX Corporate Governance Council Recommendations in relation to reporting on diversity; and the implementation of the AICD Chair’s Mentoring Program.
The AICD program was the first of its kind globally and has been the catalyst for similar programs globally. Much of the early movement in the numbers of women on ASX 200 boards can be attributed to appointments made in ASX 50 boardrooms. Mentees from the AICD program accounted for nearly half of the 21 chair positions held by women in the ASX 200 in 2021.
Lifting our game
Australia lags behind most of the Western world on statistics surrounding workplace gender equality. Our ranking in the World Economic Forums’ annual Global Gender Gap Report has slipped from 15th in the world in 2006 to 50th in 2021. Our nearest neighbour, New Zealand, currently ranks fourth.
The report’s lead researcher, UQ Business School senior lecturer in leadership Dr Terrance Fitzsimmons, said the results are a step in the right direction for gender parity in corporate roles. “Our research reveals a truly encouraging result, that Australia is leading progress for women on boards at an international level despite the challenges women still face to achieve gender parity, especially in the corporate landscape.”
AGEC chair Coral Ross AM said the report provides valuable insights as we work towards gender parity at the board level and in other facets of Australian society. “It’s often said you have to know where you have been to know where you are going. By examining how we got to where we are, this report recommends a way forward to reach gender parity in the boardroom.”
Report recommendations
The focus is on continued momentum. Recommendations include the need for a national workplace gender equality strategy — adopting a 40:40:20 model (40 per cent men, 40 per cent women, 20 per cent any gender) — and a formal alliance of the bodies that helped drive the campaign over the past decade.
The report also identifies some of the potential risks to future progress on gender diversity including the shrinking pipeline of women into CEO and senior executive roles, which is generally where board members are drawn from, as well as childcare and the unequal burden of domestic responsibility. A further barrier is the current composition of the board skills matrix, which favours CEO or senior executive line role experience for most board role positions.
Climate governance initiative Australia
Helping boards come to grips with the global governance response to climate change risk.
On 26 August, the AICD launched the Australian Chapter of the Climate Governance Initiative (CGI), known as the Climate Governance Initiative Australia (CGIA), at a complimentary, member-only event. The CGIA will support members in navigating the challenges of governing climate change risk.
Now a standing item on many board agendas, climate change is a material risk to the organisations of over half of the respondents to the latest Director Sentiment Index conducted by the AICD. Hosting CGIA will allow AICD members to access a global network of experts in risk and resilience, and connect the members with non-executive directors who are leading their organisations’ governance response to climate change.
The CGI comprises a rapidly growing network of over 20 global bodies that promote the World Economic Forum, and it seeks to equip directors with the skills to address climate change at the board level. The CGIA event featured Australian and international directors discussing how boards are grappling with climate change governance.
AICD has released a practical governance guide on climate change for directors, written in conjunction with Sarah Barker — MinterEllison partner and head of climate risk governance — which focuses on how directors can start and continue on their climate governance journey.
Queen’s Birthday Honours List 2021
The AICD congratulates members recognised in the Queen’s Birthday Honours on 14 June 2021.
ACT
PSM Shane Carmody GAICD
AM Alan Clements AAICD
AM Harriet Elvin FAICD
PSM Rebecca Skinner GAICD
OAM Hannah Wandel AAICD
NSW
AM Dr Annette Carruthers FAICD
AM Dr Leon Clark FAICD
AM Robert Estcourt GAICD
AM Nancy Fox FAICD
OAM Lincoln Hart FAICD
OAM Frances Maguire GAICD
OAM Bruno Maurel GAICD
AM Helen Scott-Orr FAICD
AFSM Murray West MAICD
OAM Morri Young MAICD
AM Joseph Carrozzi MAICD
AM Kerry Chikarovski MAICD
OAM Professor Brin Grenyer MAICD
AO Cameron Kerr GAICD
OAM Susan Murray GAICD
OAM David Rickards MAICD
OAM Gino Vumbaca MAICD
PSM Leanne Barnes GAICD
AM Timothy Brown GAICD
AM Professor Toni Makkai GAICD
CSC Robert Watson GAICD
AM Dr Bronwyn Evans GAICD
OAM Leanne Heywood GAICD
OAM Alan Manly FAICD
CSC Benjamin Sleeman MAICD
AM Karim Sumar MAICD
OAM Belinda Tallis GAICD
OAM Dr Jan Dudley GAICD
PSM Joanne Edwards GAICD
ESM Peter Kaye FAICD
OAM Sandra Lambkin GAICD
OAM Peter Meurer FAICD
AM Andrew Papadopoulos MAICD
AO Douglas Snedden MAICD
NT
OAM Tony Burns GAICD
AM Roland Chin MAICD
OAM Marie Louise Pearson GAICD
QLD
OAM Dr Amanda Dines MAICD
AM Professor Sabina Knight GAICD
OAM Gregory Russell MAICD
OAM Alison Sherry MAICD
AM Peter Turnbull FAICD
AM Professor Claire Jackson FAICD
OAM Dr Sarah Kelly MAICD
OAM Dr David Rowlands FAICD
AM Dr Charles Steadman FAICD
AO Gerard Bradley FAICD
AM Christine McLoughlin FAICD
PSM Annette Scott GAICD
SA
AM John Crosby MAICD
OAM Sam Johnson MAICD
AM Lolita Mohyla FAICD
OAM John Mula GAICD
TAS
AM Howard Blake GAICD
VIC
AM Elizabeth Clarke MAICD
OAM Janet Jukes GAICD
AO Janine Kirk MAICD
AM Craig Phillips MAICD
AM Mark Birrell FAICD
AM Dr Heather Mack GAICD
AM Helen Maxwell Wright FAICD
AM Maree McCabe GAICD
OAM James Ostroburski MAICD
AM Coral Ross FAICD
OAM Liberty Sanger GAICD
AM Dr Gillian Sparkes FAICD
OAM Dr Rosemary Brooks FAICD
AM Dr Jennifer Fitzgerald FAICD
OAM Rosanne King GAICD
AM Julie Oberin MAICD
OAM Richard Owen GAICD
AM Elana Rubin FAICD
OAM Dr Teresa De Fazio MAICD
AM Angela Emslie MAICD
AM David Gibbs FAICD
OAM Owen Hegarty FAICD
OAM Jennifer Leaper MAICD
OAM Dr Richard Leaper FAICD
AM Graeme Sinclair FAICD
OAM Faye Spiteri MAICD
WA
AM Julie Shuttleworth GAICD
PSM Kaylene Gulich GAICD
AO Dr Vanessa Guthrie MAICD
AO Warwick Hemsley FAICD
AM Dr Andrew Lu MAICD
AM Danny Murphy MAICD
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