Addressing the Gender Gap: Edition 3

The latest report titled “Mind the Gender Gap, Edition 3” conducts an in-depth analysis of 300 Indian public companies, shedding light on the uneven representation of women and the persistent gap in senior-level pay despite an increase in the workforce. The findings underscore the urgent need for proactive measures, enhanced disclosure, and increased accountability to address these disparities effectively.

The significance of fostering workforce diversity cannot be overstated. Gender diversity not only contributes to sustainable economic growth but also plays a vital role in promoting a more equitable society. By providing equal access to career opportunities for all individuals regardless of gender, countries can accelerate economic prosperity and drive social development. As part of ongoing efforts to raise awareness about gender disparities, CFA Institute and CFA Society India present this report as a contribution to stimulating dialogues within the industry aimed at closing the gender gap.

Building on previous editions published in March 2023 and December 2024, the third edition of “Mind the Gender Gap” serves as a crucial resource to draw attention to the issue and spark discussions among policymakers, regulators, and industry stakeholders. While regulatory bodies like the Securities and Exchange Board of India (SEBI) have introduced frameworks such as the Business Responsibility and Sustainability Reporting (BRSR) framework, the implementation and impact of these measures on the ground warrant closer examination.

The BRSR framework, unveiled by SEBI in May 2021, encompasses a comprehensive set of sustainability disclosures focusing on environmental, social, and governance issues. This report delves into the analysis of BRSR disclosure data from 300 companies across three reporting periods: FY 2022–23, FY 2023–24, and FY 2024–25. The selection methodology ensures a representative sample covering approximately 70% of the market capitalization of listed companies in India, spanning various sectors and industries to provide a holistic view of the landscape.

Targeted at both regulators and investors, this report aims to inform evidence-based regulatory decisions and enhance the evaluation process for investors. By tracking evolving trends and scrutinizing the translation of reported data into practical outcomes, the third edition of “Mind the Gender Gap” seeks to drive meaningful progress towards gender inclusion. Despite a notable increase in the total workforce, the representation of women within our sample declined over the reporting period, indicating a disconnect between growth and inclusion.

At the senior level, the report highlights the persistently low participation of women in key roles such as board directors and Key Managerial Personnel (KMP). Female representation at the board level fluctuated between 18% and 19% throughout the reporting periods, with a stark disparity in KMP positions where women are significantly underrepresented. Moreover, female directors earn substantially less than their male counterparts, with male directors’ remuneration exceeding that of female directors by a considerable margin that has widened in recent years.

Differences in female representation across sectors further underscore the need for targeted interventions. Sectors like Information Technology, Financials, and Consumer Discretionary demonstrate higher female participation rates compared to Communication Services, Energy, Industrials, Materials, Real Estate, and Utilities, where female representation remains lower. Notably, Utilities, Materials, and Energy exhibit the lowest female participation rates and some of the widest pay gaps at the senior level. Despite overall employment growth within our sample companies, women represented only a fraction of the incremental additions, emphasizing the need for enhanced efforts to promote gender diversity.

The report outlines several areas for improvement, particularly in enhancing remuneration disclosures and standardizing data provided regarding employee roles and hierarchy. Clear definitions and guidelines for classifying Key Managerial Personnel can foster consistency in reporting and facilitate comparisons to address pay parity effectively. Additionally, advocating for greater diversity in senior management and bridging the gap in female representation across all organizational levels are vital steps towards achieving gender equality within Indian public companies.

In conclusion, the findings underscore the imperative for a concerted effort to address gender disparities at all levels of Indian public companies. By fostering an inclusive and diverse workforce, organizations can not only enhance their performance but also contribute to a more equitable and prosperous society. The insights presented in the latest edition of “Mind the Gender Gap” serve as a call to action for industry stakeholders, regulators, and investors to collaboratively work towards closing the gender gap and building a more gender-inclusive corporate landscape in India.