Equileap, the gender data provider, and Indxx, have partnered to launch a women in technology index in the US.
The Indxx Equileap US Women in Technology Index will track the performance of technology companies in the US that are making the most improvement in terms of gender representation throughout their whole corporations.
Currently topping the index are Texas Instruments, International Business Machine and Lam Research. Companies are drawn from the Indxx Technology Sector Index and then selected based on liquidity criteria and gender scores provided by Equileap. These scores are based on 19 criteria across four categories: gender balance in leadership and workforce; equal compensation and work/life balance; policies promoting gender equality, commitment, transparency and accountability. In addition, any companies with incidents of gender discrimination or sexual harassment that have triggered legal judgements or rulings are excluded from the index.
Investing in companies that prioritise gender equality and diversity has become increasingly important, not only from a moral standpoint but also from a financial perspective. Companies with more gender equality and women in leadership positions tend to receive higher ESG scores and therefore receive more investments from ESG funds.
“The back-tested over-performance of the Indxx Equileap US Women in Technology Index of 5% over the past five years against the Indxx 500 Index adds further weight to the evidence that better gender equality leads to higher performance even in a sector where, for the most part, women are underrepresented,” said Diana van Maasdijk, CEO of Equileap.
Rahul Sen Sharma, president and co-CEO of Indxx, added: “The consequences of a lack of diversity can be far-reaching, hindering innovation, and limiting an industry’s potential to tackle complex challenges. Our partnership with Equileap allows us to…create unique opportunities within our indexing ecosystem by providing exposure to companies that are leading in terms of gender equality.”