Access Sustainalytics' second ESG Spotlight Series report on race and ethnic diversity this year. Building on insights from the previous ESG Spotlight, the next series installment focuses on bridging the demographic data gap by compiling corporate disclosures of employee composition. Our research shows that companies with more diverse upper management tended to deliver greater financial returns than those with less diverse upper management over the last five years.
While diversity has been a focal point of investors for decades, notorious acts of discrimination against racial minorities in 2020 and 2021 have drawn many investors’ attention to the topic of racial equity.