Calvert Research and Management (Calvert) is pleased to announce the 20^th anniversary of the Calvert Women’s Principles, the first global code of corporate conduct focused exclusively on advancing, protecting and investing in women. Developed in 2004 with the support of the United Nations, the Calvert Women’s Principles provide a set of standards for companies to measure progress and serve as a tangible indicator for investors to assess the evolution of gender equity in the corporate community.

“Developing the Calvert Women’s Principles was a significant step forward in 2004 and highlights the role corporations play in driving greater equality,” said Jade Huang, Chief Investment Officer, Calvert. “The Women’s Principles remain both important and relevant today, serving as a guide for companies to advance equity and inclusion across their employee base while also offering investors a consistent framework to measure progress on a factor that influences company performance.”

Calvert research and academic studies indicate that gender diversity is financially material to equity returns for both U.S. and international large-cap markets, both at the board level and when evaluating equitable advancement opportunities. Ms. Huang continued, “Fully embracing the Calvert Women’s Principles and building an equitable workforce can be a competitive advantage for corporations.”

Implementing the Calvert Women’s Principles may help companies create strong talent pipelines to ensure equity at all levels of employment. They focus on seven key areas:

1. Employment and compensation
2. Work-life balance and career development
3. Health, safety and freedom from violence
4. Management and governance
5. Business, supply chain and marketing practices
6. Civic and community engagement
7. Transparency and accountability

Gender equality has advanced significantly in the two decades since the development of the Calvert Women’s Principles but there is still more progress needed. Globally, companies have advanced female representation on corporate boards towards parity, with some regional differences. In developed markets, large-cap companies generally exceeded the 30% female board representation threshold. Women remain underrepresented on corporate boards in emerging markets with about half the representation seen in developed markets. However, the broader trickle-down effect from increased gender diversity in the boardroom has not taken place as quickly as anticipated.

“Companies across the globe have made considerable progress incorporating the Calvert Women’s Principles and adhering to the basic tenants,” said Ms. Huang. “We see somewhat of a barbell with strong levels of gender parity at the board and employee level, but lacking at the executive and senior management levels.”

Key facts:

• Women represent 47% of the U.S. workforce, but hold only 25% of senior-level positions
• The female-to-male earnings ratio was 82.7% in 2023 for full-time, year-round U.S. workers.
• In 2023, the S&P Global Market Total Index comprised approximately 15,000 c-suite roles, of which women represented 11.8% of those roles.
• Research shows that closing the gender gap in labor force participation and management in Organization for Economic Co-operation and Development (OECD) countries could raise global economic activity by roughly $7 trillion.
• The World Bank calculates that closing gender gaps in areas like employment and entrepreneurship could increase global gross domestic product by 20%.

“Company culture is an extremely important variable for success, yet difficult to measure,” Ms. Huang continued. “A culture that values different perspectives as a strength can often point to more positive outcomes. Having a framework like the Calvert Women’s Principles enables a more robust and balanced analysis that drives investment decisions focused on competitive returns and positive change.”

About Calvert Research and Management

Calvert Research and Management (Calvert) is a global leader in Responsible Investing, offering one of the largest and most diversified families of responsibly invested strategies. With over 40 years of experience, the firm seeks to generate favorable investment returns for clients by allocating capital consistent with environmental, social and governance best practices and through structured engagement with portfolio companies. Calvert is part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley. Learn more at calvert.com.

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