In its supporting statement, As You Sow writes: ‘Quantitative data is sought so that investors can assess, understand and compare the effectiveness of companies’ [DE&I] programs and apply this analysis to investors’ portfolio management and securities’ selection process.’
The group cites studies including ones finding that companies with the strongest racial and ethnic diversity are 35 percent more likely to have financial returns above their industry medians, and that the 20 most diverse companies had an average annual five-year stock return 5.8 percent higher than the 20 least-diverse companies. Read More →