Link to article: https://www.equities.com/impact-investing/these-5-sp-500-companies-are-the-best-at-promoting-diversity-yourstake-rankings-show/
This is the first in a series of articles that will incorporate data from YourStake, a technology platform designed to help financial advisors and investors align their portfolios with personal values, focusing on ESG criteria.
For investors who value workplace diversity as a key criteria in selecting stocks, YourStake has identified the top five companies in the S&P 500 that embrace the ideal.
YourStake analysts noted that diversity is just one of many screens that impact investors might run on companies and that the companies that scored highest on diversity don’t necessarily come out well on all ESG measures.
Here are the Top 5:
5. Citigroup
Employees: 239,000
Industry: Financial – Banks
YourStake diversity percentile: 98th
Since hiring Chief Diversity, Equity and Inclusion Officer Erika Irish Brown in June 2021, Citi reported exceeding its 2022 goals to increase Black and female leadership. That success came as the global investment bank increased the number of women in leadership by 4% to 41% between 2018 and 2022. The representation of Black people in leadership roles spiked to 8.1% from 6% in the same period.
The financial sector is known for a lack of Black employees in the upper echelons of the corporate ladder. While 40% of Blacks serve in entry-level positions in the industry, which falls in line with population demographics, that percentage drops when researching leadership roles.
4. United Airlines
Employees: 106,000
Industry: Industrials – Airlines
YourStake diversity percentile: 98th
In 2021, United Airlines UAL released a statement promising to train women and people of color in 50% of the 5,000 pilot trainee positions offered in the next decade. While the statement drew the ire of right-wing pundits, United has stayed true to its mission of encouraging diversity in its workplace.
CEO Scott Kirby said the airline’s goal of connecting people across the globe is more than being a conduit for transportation; it is also a mission to become as diverse as the travel network United provides.
Gender diversity is trending positively, with 64.8% of employees male in 2020 compared to 61.2% presently. Additionally, while white employees accounted for 56% of the company’s workforce in 2020, it now stands at 48.1%, with most of the difference going toward the number of Black and Hispanic employees.
3. HP
Employees: 58,000
Industry: Technology – Computer Hardware
YourStake diversity percentile: 99th
In a sector that has historically been dominated by white men, HP has skewed statistics regarding gender and race; however, the Palo Alto, California-based business outperforms its peers in most metrics.
With a board of directors comprised of 46% women and 46% minorities, the company’s overall workforce, which is 37.6% women, is being diversified through a change in hiring practices. The company reports that 67% of its new hires in the United States are either women, minorities, veterans or people with disabilities.
HP President and CEO Enrique Lores said HP was ahead of its tech company peers in creating the most diverse board of directors in America. The company has set a goal of reaching 50-50 gender equality in the company leadership by 2030.
2. Schlumberger
Employees: 111,000
Industry: Energy – Oil & Gas Equipment & Services
YourStake diversity percentile: 100th
Don’t ever judge a book by its cover. At least, that’s the theme behind Schlumberger Inc.’s second-place appearance on this list. Despite operating in an industry that often collides directly with ESG investing principles, Schlumberger got rave reviews on Glassdoor for its diversity efforts.
According to the company’s website, 40% of its board committees are chaired by women and 30% of executive leadership members are female.
The company, headquartered in Houston, is the world’s largest offshore drilling company and the largest offshore drilling contractor by revenue, boasting a market capitalization of $66 billion.
Its website promotes diversity in terms of employee identity and how it operates globally. Schlumberger reported that of its $33.14 billion in revenue from 2023, 21% originated from North America, 21% from Latin America, 27% from Europe & Africa, and 31% from the Middle East and Asia.
1. Cummins
Employees: 75,500
Industry: Industrials – Specialty Industrial Machinery
YourStake diversity percentile: 100th
An astonishing 25% of employees at Cummins speak two or more languages. A global corporation headquartered in Columbus, Ind., known for its robust diesel engines Cummins has consistently ranked as one of the top diversity-minded employers in the S&P 500.
An astonishing 66% of global employees were born outside of the U.S., and the company’s 14-member leadership team includes 6 women. Additionally, 30% of vice presidents and officers are Black or Latino.
Last year, Forbes named the $40 billion company as one of the best employers for women. Cummins has also employed a diversity program reveolving around its suppliers. The initiative has led to more LGBT-owned, veteran-owned, women-owned and minority-owned businesses being used in its day-to-day operations.
YourStake embraces data transparency on its company screeners to combat “greenwashing” and uses more than 150 databases to provide accurate information to impact investors. For the diversity study, YourStake relied on the Massachusetts Institute of Technology’s Sloan Management Review Culture 500 index, which used about 1.4 million Glassdoor reviews to rank companies by diversity.
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