EM2: Inclusion and Diversity – Above Green

(points determined by materiality)

Intent

This indicator identifies the metrics used by the organization to monitor inclusion and diversity in governance bodies and at employee level. Diversity on boards has become a clear priority for investors and is considered to positively impact investment decisions and organizational competitiveness.

Requirements

Select Yes or No: If selecting “Yes”, select all applicable checkbox(es).

Does the entity report on inclusion and diversity?

Yes
- Diversity of the entity's governance bodies
  - Select all diversity metrics: (multiple answers possible)
    - Age group distribution
    - Board tenure
    - Gender pay gap
    - Gender ratio - Percentage of individuals that identify as:
      - Women: _______% | Man: _______%
    - International background
    - Racial diversity
    - Socioeconomic background
- Diversity of the entity's employees
  - Select all diversity metrics: (multiple answers possible)
    - Age group distribution - Percentage of employees that are:
      - Under 30 years old: ____________%
      - Between 30 and 50 years old: ____________%
      - Over 50 years old: ____________%
    - Gender pay gap
    - Gender ratio - Percentage of individuals that identify as:
      - Women: _______% | Man: _______%
    - International background
    - Racial diversity
    - Socioeconomic diversity
  - EXCEPTIONS - Does the entity’s data reported above cover all, and only, the facilities (as reported in RC3) and activities (RC4) for the entire reporting year (EC4)? (for reporting purposes only)
    - Yes
    - No
      - Please indicate which facilities, activities and/or time periods are additional or excluded from the data reported above
        
        ________________________
No
- Provide additional context for the answer provided (not validated, for reporting purposes only)
  ________________________

Changes: Indicator is now covered under the new aspect “Employees”. Indicator has been renamed, from “Gender & Diversity” to “Inclusion & Diversity”. Gender ratio is now a scored metric.

Prefill: This indicator is similar to the one included in the 2019 Assessment and some sections have been prefilled from the 2019 Assessment. Review the response and/or evidence carefully.

Checkbox(es): Multiple answers are possible. Select all applicable answers.

Numerical text boxes: Participants should indicate the percentages for the relevant employee groups.

Reporting level: Answers should be applicable at the entity, operator and/or manager level.

Exceptions

Select Yes or No: GRESB is seeking to standardize the scope and boundaries of reporting to allow for more accurate benchmarking and to progressively move towards scoring of performance. If the scope of the data reported for this indicator does not exactly match the reporting scope (facilities, ancillary activities and time period) as reported in “Entity and Reporting Characteristics” (EC3, RC3, RC4), then answer ‘No’ to this question and describe these exceptions in the “Exceptions” text box.

Examples are:

Temporal - A toll road includes data on energy consumption from its street lighting within its boundary but due to a data glitch, it lost this data for a two month period during the reporting year.
Physical - A toll road includes data on energy consumption from its street lighting within its boundary but due to a data glitch, it lost this data for a two month period during the reporting year.
Operational - An airport includes the operation of mobile equipment within its reporting boundary but not for aircraft since these are operated by airlines.

Validation

This indicator is not subject to manual validation.

Scoring

Materiality-based Scoring: This indicator applies materiality-based scoring. The materiality weighting for this indicator is determined by the materiality level of the ‘Inclusion and diversity’ issue in the GRESB Materiality Assessment (RC7).

Where this issue is of ‘High’ relevance, this indicator will be weighted highly and where this issue is of ‘Medium’ relevance, it will be weighted moderately. If materiality for this issue is set at ‘No’ or ‘Low’ relevance for the entity, this indicator will not be scored. As a result, the weight of this indicator may differ for each participant based on its materiality profile. The weighting of the material (scored) indicators in the Performance Component is automatically redistributed to ensure that the Component retains its overall weighting of 50% of the Asset Assessment. For more details refer to the section on Materiality Based Scoring in this Reference Guide or download the GRESB Materiality & Scoring Tool

Scoring of Metrics: This indicator is scored as a one-section indicator (i.e. Section 1: 'Elements' response). Points are awarded depending on providing information for the scored metrics.

Two options are scored:

Gender ratio of governance bodies
Gender ratio of all employees

For each provided metric, 1/2 points are provided. Entities can therefore only obtain maximum points for this indicator if they provide values for both metrics.

Reporting of exceptions is not scored in 2020.

Terminology

Employee: Individual who is in an employment relationship with the entity, according to national law or its application.

Gender pay gap: Percentage difference of average hourly earnings between men and women.

Gender ratio: Proportion of one gender to another in a given population.

Governance body: Committee or board responsible for the strategic guidance of the organization, the effective monitoring of management, and the accountability of management to the broader organization and its stakeholders. Examples of governance bodies may include Board of Directors and Non-Executive Directors.

Socioeconomic background: Combined measure of sociological and economic background of a person.

References

ILO - Equality and Discrimination

Alignment with External Frameworks

DJSI CSA 2019 - 3.1.4 Gender Diversity

EPRA Best Practices Recommendations on Sustainability Reporting 2017 - 5.1, Diversity-Employee gender diversity

EPRA Best Practices Recommendations on Sustainability Reporting 2017: 5.2, Diversity- Pay Gender pay ratio

GRI Standards 2016 - 102-22 - Composition of the highest governance body and its committees

GRI Standards 2016 - 405-1 - Diversity of governance bodies and employees

Relevant UN Sustainable Development Goals

SDG 5 - Gender Equality

5.1 End all forms of discrimination against all women and girls everywhere

5.5 Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life

SDG 8 - Decent Work and Economic Growth

8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value

SDG 10 - Reduced Inequalities

10.2 By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status

10.3 Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard