Business Engage Unveils “Getting to 40” – The 2023 State of Gender on JSE-Listed Boards
Sponsored by Nedbank, Kearney Africa | In Association with IoDSA and 30% Club Southern Africa

Johannesburg, South Africa – Business Engage Association NPC, a leading force in gender mainstreaming and corporate governance, is proud to release the “Getting to 40” report, sponsored by Nedbank and Kearney Africa, in association with the Institute of Directors in South Africa and the 30% Club Southern Africa. This comprehensive report, based on 2023 company reporting, provides an in-depth analysis of gender representation across boards of companies listed on the Johannesburg Stock Exchange (JSE), highlighting progress, challenges, and opportunities for advancing women’s representation in corporate leadership.   At the core of the report, it is noted that many positions are approaching the 40% female representation mark with a number of non-executive directors, lead independent directors and audit and risk committee members being such examples.  For the first time, the research delved into the 10 industry categories as defined by the JSE.

Global Context and Local Realities

The “Getting to 40” report not only delves into the status of gender diversity on JSE-listed boards but also draws comparisons with global trends, revealing how South Africa’s progress aligns with, or diverges from, international benchmarks. For instance, Australia’s ASX 300 has achieved 36.9% women on boards, while Europe’s top economies like Germany and Italy are setting quotas at 30% and 40%, respectively. These insights help frame South Africa’s gender diversity journey within a broader global narrative, providing a reference point for understanding the nation’s progress.

Key Findings from the Report

Note: figures quoted are based on the companies analysed, not the total JSE per se.

• Companies Analysed: Out of 292 JSE-listed companies at the time of the research, 247 were included in the analysis, with exclusions due to suspension or incomplete reporting. This reflects a more streamlined dataset compared to previous years, allowing for sharper insights into board composition and gender policies.
• Gender Representation at Board Level: The gender ratio on boards continues to trend upward, with women comprising 36% of board members overall. Parity has been achieved or exceeded in 37 companies, with 47 more companies nearing gender parity, requiring just one more female appointment to reach equal representation.
• Leadership Roles: Despite the progress, gender gaps persist in top executive positions. Women hold 19% of board chair roles, 10% of CEO roles (an improvement from 7% in 2022), and 22% of CFO positions. These figures indicate a gradual shift but also highlight the need for more proactive measures to close the leadership gap.
• Industry Breakdown: The report also offers a first-of-its-kind analysis of gender diversity across industries on the JSE. Key sectors such as Financials, Industrials, and Consumer Services show varying degrees of progress, with social and ethics committees having the highest female representation at 51% for chairs and 35% for members.

Opportunities and Challenges

The report identifies 31 immediate opportunities for appointing women to board positions across 21 companies. Yet, the challenge remains for companies still practicing a “one and done” approach, where the presence of a single female director is deemed sufficient. This attitude, noted in 43 companies, underscores the need for continued advocacy and policy enforcement.

Voluntary Targets and Reporting

A mixed picture emerges regarding the setting and achievement of voluntary gender targets. While 65 companies report having targets that are still to be met, 47 companies have already reached their goals. However, the overall trend towards detailed gender reporting is still lacking, with 19 companies opting not to disclose their gender policies or provide vague statements.

Sector-Specific Insights

The analysis extends to the top five industries on the JSE, revealing nuanced differences in gender representation:

• Financial Sector: Women hold 34% of non-executive director roles but only 16% of board chair positions.
• Industrials: Shows a more balanced gender ratio, with 37% of non-executive roles filled by women.
• Telecommunications: Lags in leadership roles, with no female board chairs or Lead Independent Directors.
• Consumer Goods: Demonstrates promising progress, with women comprising 38% of non-executive roles.
• Consumer Services: Does well in Chairs and Members of the Audit, Risk and Investment Committees.

 

A Call to Action

Business Engage emphasises the need for continued momentum toward the 40% target for women on boards, aligning with international best practices. The organisation’s approach underscores that transformation requires both regulatory pressure and corporate commitment to sustain progress.

 Quotes

“We are at a pivotal moment where gender parity on boards is not just a goal but a necessary standard for inclusive and effective corporate governance,” said Colleen Larsen, CE of Business Engage. “The ‘Getting to 40’ report serves as both a benchmark and a call to action for companies to close the gender gap and lead by example.”

 About Business Engage

Business Engage is dedicated to advancing gender mainstreaming and corporate governance in South Africa. Through strategic partnerships, research, and events, it drives meaningful change across the corporate landscape in Africa. The organisation’s initiatives, including the Board Masterclass Series and the Gender Mainstreaming Awards, foster a culture of corporate gender intelligence in business.

For more information on the “Getting to 40” report and Business Engage’s efforts in gender diversity, visit www.businessengage.africa.

About Nedbank Ltd

Nedbank Group is a bank holding company listed on the JSE Limited, with a market capitalisation of R125bn as at 30 June 2024. Nedbank is one of Africa’s largest banking groups, with operations in South Africa, Namibia, Eswatini, Mozambique, Lesotho and Zimbabwe, and offshore in the Isle of Man and Jersey. It also has representative offices in other Africa countries, including Kenya, and has key global financial centres to provide international banking services for SA-based multinational and high-net-worth clients in London and Dubai. The group is a diversified financial services provider, offering a wide range of wholesale and retail banking services, as well as insurance, asset management and wealth management solutions. Nedbank has maintained its level 1 BBBEE status for the past 6 years and rates in the top quartile of local and international banks on ESG scores. www.nedbankgroup.co.za

 

About Kearney Africa

Kearney is a leading global management consulting firm. For nearly 100 years, we have been a trusted advisor to C-suites, government bodies, and nonprofit organisations. Our people make us who we are. Driven to be the difference between a big idea and making it happen, we work alongside our clients to regenerate their businesses to create a future that works for everyone.

Visit www.kearney.com for more information.

 

Media Contact

Malcolm Larsen

Company Secretary : Business Engage Association NPC

084-353-9865

malcolm@businessengage.co.za.

 

Notes to Editors

The full “Getting to 40” report is attached for reference.