Board diversity disclosure analytics are freely available through the KPMG Board Diversity Disclosure Benchmarking Tool, powered by ESGAUGE. The tool allows corporate and board leaders, investors, employees and other stakeholders to compare diversity disclosure practices by sector, index (Russell 3000 and S&P 500) and company size to help identify trends in board diversity disclosure.
Demand for companies to disclose their board diversity policies and demographics continues to grow. Until now, analysis of the level and types of disclosure by public companies had been available only through company-by-company review of proxies and other company disclosures.
“Diverse boards are more effective, and disclosure drives action,” said Senior Advisor, KPMG Board Leadership Center Susan M. Angele. “As stakeholder calls continue to grow for disclosure of board diversity as well as policies and practices, this tool will help measure progress and highlight gaps.”
Using the tool, the KPMG Board Leadership Center analyzed board diversity disclosure practices as of January 31, 2021. The initial information provides a baseline for benchmarking change over time. Key findings include:
Many companies do not include gender, race, ethnicity or sexual orientation in their public description of how diversity is incorporated into director search criteria.
Most Russell 3000 companies do not disclose the level of diversity of their boards.
It is rare for companies to identify individual diverse directors.