Canadian banks figured strongly in the top 25 firms as ranked by diversity and inclusion scores, in a report compiled by Refinitiv.

Royal Bank of Canada, Refinitiv
Royal Bank of Canada ranks second out of the 25 top firms rated for being the most diverse and inclusive organizations globally by market data and information provider Refinitiv. The figures showed Canadian banks scoring particularly strongly.

The firm’s Diversity & Inclusion (D&I) Index, drawing on the performance of almost 11,000 firms, accounting for more than 80 per cent of global market cap, shows that clothing brand Gap ranks number one, ahead of RBC (banking), then Accenture (accountancy), Owens Corning (building materials firm), Allianz (insurance, investment), BlackRock (asset management), Enel (energy), Coca Cola (drinks), Kering (luxury goods), and Marriott International (hotels). Among other banks mentioned in the rankings are Bank of Nova Scotia (14th); Toronto-Dominion Bank (15th); Nedbank Group (16th), and Bank of Montreal (22nd) – suggesting a strong showing for Canadian lenders.

The index is used by financial professionals to evaluate sustainability-related risks and opportunities of companies across their investments. The D&I Index uses analytics to rate companies across four main pillars: diversity, inclusion, people development and controversies. Only companies with scores across all four pillars are assigned an overall score (the average of the pillar scores). The top 100 ranked companies with the best overall D&I scores are selected for the index.

“The expectations of a new generation of investors are reverberating up the asset management value chain. These center on investing to environmental, social and governance criteria and the digital experience in general. Today’s investors are far more likely to embrace ESG than their parents, from whom they stand to inherit the bulk of consumer wealth,” William Trout, director of wealth management at Javelin Strategy & Research, said. 

“Their motivations and triggers are also distinctive, in that social and corporate governance issues rival the environment in their calculus. Meeting their needs in an engaging and interactive manner constitutes a make-or-break opportunity for the modern wealth manager,” Trout added. 

The figures showed regional variations. Europe, the Middle East and Africa lead with the most culturally diverse boards. Regionally, Africa is making the most progress with a three percentage point improvement over five years. 

The index was first published in 2016.