BeyondGenderAgenda publishes the German Diversity Index 2023 for the third time, under the scientific leadership of Prof. Dr. Susanne Schmidt, from the Chair of International Management at Otto-von-Guericke-Universität Magdeburg.
The ranking, which was launched in 2021, evaluates the diversity commitment of DAX-40 companies. For the German Diversity Index 2023, the publicly available business, sustainability, diversity and HR reports of the companies were evaluated. This year, for the first time, it was no longer possible to submit additional information and evidence.
The criteria of the German Diversity Index are based on the latest findings from science and practical experience. This year’s index is calculated on the basis of three main categories: (1) diversity metrics, (2) diversity is an executive responsibility, (3) diversity management.
THE RANKING IN DETAIL
The German Diversity Index 2023 is once again led by Allianz with 65.5 points out of a possible 100. Deutsche Telekom, which came third last year, follows in second place with 54.9 points. SAP (in second place in 2022) completes the top 3 with 50.5 points.
The overall average is 32.1 points, slightly below the previous year’s average of 33.7 points. This shows that there is still room for improvement in documented diversity commitment. Only the top 3 achieved more than half the possible points. The twelve companies at the bottom of the ranking each scored less than a quarter of the possible points.
Victoria
Wagner
Founder & CEO BeyondGenderAgenda
With the German Diversity Index, we are replacing the lack of binding standards and regulations for comprehensive diversity reporting. We want to motivate the companies in the leading share index to voluntarily provide transparency for their stakeholders.
Prof. Dr. Susanne
Schmidt
Professor of International Management, Otto von Guericke University Magdeburg
A look at the individual categories shows that “diversity management” is by far the strongest category, with a mean value of 50%. This is consistent with the picture from previous years that numerous measures for diversity, equality and an inclusive working environment are already being implemented in the companies. In the category ” diversity is an executive responsibility”, the companies achieve an average of one-third of the possible score. What is interesting here this year is that 22 of the 40 companies already link the bonuses of the board members to the achievement of diversity targets. On the other hand, only half of the companies assessed reported having developed and implemented a diversity strategy. Bringing up the rear in the categories again this year is “Data Management & KPIs.” Only one company documented the impact of diversity on the company’s success. On average, data is collected for just over three of the six diversity dimensions assessed.
Methodology
1) Data management and KPIs:
This category reviews data management and objectives related to diversity. Points are awarded for each diversity dimension for which data is collected. Additional points are awarded for each dimension that is assigned a target rate for the Executive Board. For the dimensions disability and gender, the actual quotas are also assessed. Points are awarded for a current quota of people with disabilities that exceeds the statutory requirement of 5%. of 5 %. The actual quota of women in the company is scored if it exceeds the critical mass of 30%, as studies show that a positive effect on the performance of a diversified team can be seen above this level. Additionally, there are points for companies that have established performance metrics to measure diversity as well as an inclusive work environment on company success.
(2) Diversity is an executive responsibility:
In this category, the focus is on the board of directors. Here, diversity in the current board composition is first assessed in terms of disabilities, gender, age, cultural and social background, and different 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 targets are bonus-relevant. In addition, points are awarded to companies that have documented their diversity strategy.
(3) Diversity management:
Here, the structures and measures for promoting diversity are assessed. Points are awarded for corresponding target-oriented measures. Points are also awarded to companies that have an independent organizational unit for diversity.