The Power Of Equal Opportunity

Posted On Monday, Jan 18, 2021


Equality for women "remains the great unfinished business of the 21st century"

The quote by former United State Secretary of State Hillary Clinton did really press the nerve in 2014 United Nations event.

The reality has, however, been slow and swampy.

Gender is a crucial aspect that is intertwined with Environment, Social and Governance (ESG).

As per the International Labour Organization Database, the world average for percentage of total women employed is ~39% in 2020.

Strikingly, the average women participation in India is barely close to 19%.

A quick glance at the sample of Indian companies shows the women employment in proportion to the total employed across different sectors continues to be well below global average.

Service-oriented sector moving faster towards gender equality

% of Females in Total WorkforceFY '17FY '20
Consumer Staples7%8%
Consumer Discretionary3%5%

Source: Quantum Proprietary ESG Research, 2020

A mere 1% increase in the percentage of women employed from 2017 to 2020 strongly indicates the need to address the issue of gender parity on a high priority basis.

If this trend continues, it would take India approximately 80 years to be at par with the global average!

Historically, the financial sector absorbs more female workers given the fixed nature of the job and security of employment. In case of India, the share of women employed is yet far off from the global average.

Technology sector has certainly emerged as a female friendly sector and manages to employ up to 30% plus females. The gender pay parity is something that needs a further investigation.

Traditionally, sectors like materials, industrials, manufacturing, and mining were male dominated as the jobs demanded extensive physical tenacity and commitment of long working hours. The social aspect was another hurdle in increasing the participation of women in these sectors.

In the current scenario, the share of women in sectors like consumer staples, consumer discretionary and materials continue to be disappointing. These sectors have been revolutionised by automation and technology that can enable the management to increase women representation.

The data continues to be supported by stereotypes and biases even in 2020.

It is time to walk the talk. Make a difference before it is too late.

It is crystal clear that the pandemic has further affected women disproportionately and the need for a greater push towards making gender parity a priority is being felt more than ever.

How does this affect investors?

The latest McKinsey & Company report on “Diversity wins” shows that women contribute positively to the company’s decision making, innovation capacity, financial strength and good governance.

Gender diversity is crucial for profitability and value creation. Gender equality, thus, becomes an important essential for the longevity of the company.

As investors, it is in our best interest to demand more disclosures and improvement on gender diversity. One of the crucial aspects to consider while investing in a company is to assessment of gender diversity.

• Women representation at the management and board level

• Equal and fair compensation to men and women

• Diverse approach to hiring and promotions

Improving disclosures on gender parity is just an initial step to understand the truer picture of women employment and the depth of gender inequality across different sectors.

On a positive side, the regulators are also supporting the issue of addressing the gender inequality at workplace.

Securities and Exchange Board of India (SEBI) is taking cognizance of the fact that investors are now investing mindfully and material aspects of ESG play a bigger role in making an investment decision.

The new disclosures by top 100 listed companies about health care benefits to women, composition of women employees as per skill set, percentage of women employees earning less than median wage will nudge the companies to assess their business from a different perspective.

As more and more investors choose to invest responsibly based on ESG framework especially with intent towards gender parity, it will provide a new vantage point to steer a change in the way companies have been operating so far.

Regulator, asset managers, investors, employer and employees, let’s all collaborate to finish this unfinished business of closing the gender gap and stop paying lip service to gender equality.

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

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Please visit – to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.

Above article is authored by Quantum.

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