In 2023, As You Sow released Capturing the Diversity Benefit: Workforce Diversity Linked to Financial Performance, which found a statistically significant correlation between higher percentages of BIPOC (Black, Indigenous, and People of Color) management and increases in eight standard financial metrics.
As we worked on Social Justice Funds, our newest Invest Your Values tool, we wondered if we would find a similar effect. How do the returns of mutual funds correlate with their gender equality, diversity disclosures, racial justice, and LGBTQ+ equity ratings?