Women’s boardroom participation stuck at 18% in Bangladesh: IFC study

The percentage of female board directors in Bangladeshi listed firms is 18%, highest in South Asia, but the country could not improve this ratio since 2017, reveals a study by the International Finance Corporation (IFC).

The percentage in Bangladesh was higher than the global average of 17% even in 2021, but the country has fallen behind the global average of 19.7% this year as it made no progress in this regard since 2017, according to the World Bank Group entity's latest report titled "Gender diversity on DSE-Listed Companies' Boards."

However, the percentage has slowly increased in case of female independent directors at listed firms – 3% in 2017 to 6% in 2022.

Independent directors are not shareholders of companies and they are appointed in boards because of their expertise that helps protection of minority shareholders' rights.

The Bangladesh aspects of gender equality in corporate decision making roles were presented at a discussion session in the Dhaka Stock Exchange (DSE) on Monday as a part of International Women's Day celebration programme titled "Ring the Bell for Gender Equality."

IFC, the DSE, UN Women and the United Nations Global Compact have been jointly organising the programme for the last seven consecutive years.

At the event, Swiss Ambassador to Bangladesh Nathalie Chuard, DSE Managing Director Tarique Amin Bhuiyan,   UN Women Bangladesh Office Head Gitanjali Singh, and IFC Country Manager for Bangladesh, Bhutan and Nepal Martin Holtmann were among the speakers who stressed closing the gender gap in leadership role in the economy for the sake of sustainable and inclusive development.

Meanwhile, in a new joint report on "How Exchanges Can Advance Gender Equality: Updated Guidance and Best Practice," the UN Sustainable Stock Exchanges (SSE) initiative and IFC identified three broad areas where stock exchanges can play a role in advancing gender equality.

These include the promotion of gender-focused and gender-aware products and services, strengthening of market performance on gender equality and leading by example.

"Investing in women's economic empowerment is both the right thing to do and the smart thing to do as it sets a direct path towards gender equality, poverty eradication and inclusive economic growth," said Gitanjali Singh.

The report offers guidance on implementing gender-responsive action plans, such as supporting the listing of gender-focused financial instruments, addressing barriers to gender equality on boards and senior management, promoting increased transparency on gender performance through expanded environmental, social, and governance disclosure, and setting gender targets for listed companies.

Over 120 stock exchanges across the world have taken part in "Ring the Bell for Gender Equality" events this year.