German Diversity Index 2022: DAX 40‘s Diversity Commitment
Düsseldorf, June 1st, 2022 – For the second time, BeyondGenderAgenda is publishing the German Diversity Index. The index evaluates the diversity on the board of directors and assesses the commitment to diversity of the DAX 40 companies, which is documented in annual and sustainability reports. Allianz, SAP, and Deutsche Telekom are the top 3 companies in this year’s index.
Today Germany’s leading diversity network BeyondGenderAgenda published the German Diversity Index 2022, under the scientific direction of Prof. Dr. Susanne Schmidt, from the Chair of International Management at Otto von Guericke University. The ranking, which was launched in 2021, evaluates the commitment to diversity of the DAX 40 companies documented in annual and sustainability reports.
In addition to evaluating the available annual and sustainability reports for 2021, all 40 companies were able to submit further information and evidence. 16 out of the 40 DAX companies took advantage of this offer. From next year, only the information documented in annual and sustainability reports for 2022 will be evaluated.
The criteria of the German Diversity Index are based on the current German Diversity Monitor and are therefore adjusted annually to reflect the latest scientific findings. This year’s Index is calculated based on four main categories: (1) Diversity Key Performance Indicators (KPIs), (2) Diversity is an executive directive, (3) Resources for diversity management, and (4) Inclusive work environment.
(1) Diversity Key Performance Indicators: This category reviews data management and diversity-related objectives. Points are given for each diversity dimension for which data is collected. There are further points for each dimension that is assigned a target quota (in the case of disability and gender: beyond the legal requirements). The actual quotas are also evaluated for the dimensions of disability and gender. There are points for a current quota of people with disabilities that exceeds the legal requirement of 5 %. The actual proportion of women in the company is evaluated if it exceeds the critical mass of 30 %. According to studies, a positive effect on the performance of a diversified team is seen from this value onwards. In addition, there are points for companies that have established key performance indicators to measure diversity and an inclusive working environment on the company’s success.
(2) Diversity is an executive directive: In this category, the focus is on the executive board. First of all, the diversity in the current board composition is evaluated in terms of disabilities, gender, generation, ethnicity, social mobility as well as sexual orientation and gender identity. Points are also awarded if a board member is personally responsible for diversity in the company and if the board members’ diversity goals are bonus relevant. In addition, there are points for companies that have documented their diversity strategy.
(3) Resources for diversity management: The provision of human and financial resources for the topic of diversity is evaluated here. There are points for companies that have their own organizational unit for diversity and for companies that provide a specific diversity budget.
(4) Inclusive work environment: This category evaluates the promotion of an inclusive work environment. Points are awarded for corresponding target-oriented measures.
“The German Diversity Index evaluates the diversity commitment of the DAX 40 companies and makes them comparable through uniformly applied criteria. There are still no binding standards for documenting commitment to diversity in annual and sustainability reports. We would like to change that in the future in order to increase transparency for stakeholders and the public and to motivate the companies in the German share index to intensify their commitment to diversity in the long term,” explains Victoria Wagner, founder and CEO of BeyondGenderAgenda, the goal of the index.
The ranking in detail
The German Diversity Index 2022 is led by Allianz with 63.3 out of 100 possible points. Last year’s leader SAP followed in second place with 58.7 points. Deutsche Telekom completes the top 3 with 57.4 points, moving up seven places compared to the previous year.
Puma (55.2 points), Zalando (52.0 points), and Bayer (51.3 points) together with the top three are among the only six companies that have achieved more than half of the possible 100 points.
The overall average is 33.7 points and shows that the documented commitment to diversity still has room for improvement. Three companies even achieved less than 10 % of the possible number of points.
HelloFresh, Linde, and Qiagen were not evaluated because the annual reports or non-financial statements for 2021 were not available as of March 31, 2022. Siemens Healthineers was not rated because the company is exempt from submitting the non-financial statement and refers to the combined non-financial statement of the group.
Detailed results by category:
(1) Diversity Key Performance Indicators: The average score achieved is only 27 % of the possible points. SAP clearly leads this category with 58 %, followed by Deutsche Bank, Deutsche Post, and Deutsche Telekom with 46 % each.
(2) Diversity is an executive directive: The average number of points achieved is 35 % of the possible points. The leaders in this category are Allianz and Puma with 75 % each. No company achieved full marks in this category.
(3) Resources for diversity management: The average number of points achieved is 31 % of the possible points. Adidas, Allianz, Delivery Hero, Deutsche Telekom, Puma, and Zalando scored 100 % in this category. 20 of the evaluated companies received 0 points in this category.
(4) Inclusive work environment: The average score is the highest in this category, at 63 % of the possible points. Allianz, Bayer, and MTU Aero Engines get full points in this category.
“The results of the individual categories show that on average almost two thirds of the possible points were achieved in the category ‘Inclusive work environment’. Measures for an inclusive working environment are therefore already mentioned frequently and comprehensively in the reports. However, it is not clear from the reports whether these measures are having the desired effect. With an average of 35 points, the category ‘Diversity is an executive directive’ achieved the second-highest point average. It is gratifying that in 19 companies a board member is personally responsible for diversity. Linking diversity goals to bonuses, on the other hand, has rarely been documented. The ‘Resources for diversity management’ category comes third with an average score of 31. However, only six companies have named a specific diversity budget. The ‘Key Performance Indicators’ category once again brings up the rear this year. On average, only a quarter of the possible number of points was achieved here. Above all, almost all companies do not measure the impact of diversity on corporate success,” explains Prof. Dr. Susanne Schmidt the results.
“I see the greatest need for development in the coming years in the key performance indicators. Here I would like companies to voluntarily set themselves binding diversity goals, document and track them. Great levers for a faster development of diversity in the company are the remuneration relevance of dedicated diversity goals and the measurement of the impact of diversity on the company’s success. Both KPIs should be established and used by companies,” Victoria Wagner, founder and CEO of BeyondGenderAgenda, comments on the results.
Current information can be found at: GermanDiversityIndex.com