Investors want boards to focus on diversity in the 2019 proxy season

Board diversity, climate changes and human capital management are the top three topics shareholders want boards to focus on in 2019, according to a survey carried out by the US EY Center for Board Matters, which interviewed 60 institutional investors with approximately $32 trillion of assets under management.
Just over half (53%) of the investors EY spoke with emphasized that board diversity, primarily inclusive of gender, race and ethnicity, should be a top board focus in 2019, up from one-third (33%) three years ago. Around half (49%) of investors said a top board focus should be business-relevant environmental and social factors, such as water management for food and beverage companies and plastic pollution for consumer goods companies.
More than a third (39%) of investors told human capital management should be a top board focus in 2019, up from just 6% three years ago. Some investors are focused on particular issues, such as workforce diversity and pay equity, while other ones take a broader view of the topic and want to understand how companies are retaining and developing talents, for example.
Click here to read the complete survey.