DNB ASA is Norway's largest financial services company, headquartered in Oslo. Its subsidiary, DNB Asset Management, offers about 100 funds through its investment businesses in Norway and Luxembourg across Europe. On the occasion of International Women's Day 2025, Lise Borresen, Head of ESG at DNB Asset Management, comments on the topic of gender equality. Interestingly, despite headwinds from the USA on the issue of diversity, this topic still ranks quite high in Norway – apparently with good success.
Norway regularly ranks among the top 5 countries in the Gender Equality Index. European countries lacking in gender diversity could benefit from the Scandinavian approach by promoting the representation of women on boards and increasing wage transparency, similar to Norway's 40% quota on boards. This also includes the integration of gender metrics into ESG frameworks and supporting measures such as subsidized childcare to increase labor participation in both the public and private sectors. The Nordic model shows that regulation, cultural changes, and long-term engagement lead to measurable progress. We encourage companies to report clear KPIs for gender equality, accountability at the board level, and transparency in salaries and promotions to raise awareness and promote the advancement of women in the companies DNB invests in.
Inconsistent Data Base
Of course, there are still challenges in our country as well. Cultural resistance in male-dominated sectors and inconsistent global reporting standards significantly contribute to inequalities. Moreover, cultural differences and varying dynamics in women's labor participation in some markets hinder the rise of women to upper management and complicate the appointment of qualified board members. Certain industries have significant gender-specific differences in the workforce that reflect these challenges. Encouragingly, many companies are now introducing and implementing programs to strengthen the role of women and promote women's advancement. This challenge goes beyond gender, and we are working to promote diversity in the workforce and on boards in various forms.
Definition of Gender Equality and Diversity
Implementing equality and diversity is generally no easy task. Studies on diversity mostly focus on gender because reliable and readily available data exists for this factor. Capturing and analyzing diversity in a broader sense is more challenging for several reasons: first, some diversity data is considered sensitive and can be associated with problems in data collection (data protection regulations) or reluctance to disclose this information. Comparability of such data can also be a challenge, as collective identities can be flexible and variable. These concerns are relevant not only for companies but also at the country level. Some OECD countries with well-established national statistical systems have limited or no statistics on diversity.
Research on the effects of equality and diversity on efficiency and corporate performance yields mixed results. Hülsheger, Anderson, and Salgado (2009) concluded that there is no different relationship between task-related (function, profession, education, tenure, knowledge, skills, or expertise) and background diversity (non-task-related differences such as age, gender, or ethnic origin) on corporate performance. Google's Project Aristotle found that openness, including emotional interactions, and equal contribution are the most valuable factors for increasing efficiency, though it is acknowledged that these factors may be difficult to optimize. Furthermore, some believe that focusing on diversity can even be counterproductive, as labeling people and categorizing them can promote division. On the other hand, other studies show that a higher degree of gender-specific and ethnic-cultural diversity correlates with corporate performance. A Harvard study found that gender diversity can be a possible factor for team effectiveness, as the mix of genders can offer a variety of knowledge and skills. The study concluded that gender-balanced company teams perform better in terms of revenue and profit than male-dominated teams.
Diversity and Return
Studies by Nordea and Morgan Stanley show a link between gender diversity and higher risk-adjusted returns and, on average, lower volatility. Research by McKinsey comes to the same conclusion and also shows a statistically significant correlation between ethnic/cultural diversity and financial performance. However, it is important to emphasize that no study suggests a causal relationship between gender-specific or general diversity and corporate governance. This is because research cannot definitively determine what causes the correlations found, as isolating and measuring such factors is difficult. Despite inconclusive research results, collaborating with companies to improve gender equality and diversity remains a key focus area in our corporate strategy for responsible investments.
Innovation through Diversity
The way companies handle diversity impacts investors. Companies with a high degree of diversity throughout the organization can benefit from a greater variety of perspectives and skills, leading to more thorough decision-making, better anticipation of challenges and obstacles, and more innovation. All these factors have the potential to improve the quality of discussions and decisions and create a stronger culture of equal opportunity. At the same time, such companies can reduce their vulnerability to lawsuits and fines, reputational damage, and structural risks such as difficulties in attracting and retaining talent at various levels of the organization—issues that can negatively affect performance and thus long-term returns for investors. For these reasons, the integration of diversity into a company is seen as an indicator of good corporate governance and the quality of the company.
We therefore conclude that a shift in corporate culture towards more integration is a key factor that companies should consider and will naturally lead to more diversity in companies.
Under this author name you will find guest contributions from various people that we publish on their behalf.