Since the Danish Committee of Corporate Governance first recommended in 2008 that listed companies establish a diversity policy, these guidelines have been periodically revised to emphasize the importance of diversity—including age, gender, educational, and commercial backgrounds. The board is responsible for ensuring a diverse composition within itself (section 3.1.1) and across all management levels of the company (section 3.1.2).
2023 marks a pivotal year of transformation in diversity governance at Danish companies. Long-standing recommendations have transitioned into mandatory legal requirements with the enactment of Bill L 117 A. This new legislation requires all companies listed in Denmark (and others of a particular size/ownership structure) to adopt more structured and ambitious diversity targets starting January 1, 2023, from the accounting year.
Hence, our annual analysis of the C25 companies' Annual Reports (and websites) to identify their performance and reporting regarding gender balance has shifted format to accommodate these changes.
The good news is that this year’s analysis (2024) shows that gender diversity on the boards of the Danish C25 companies remains similar to previous years, with around 40% women on boards. A few boards even have more women than men.However, all companies are still significantly behind in creating a gender balance at other management levels.
Moreover, despite the new law (Bill L 117 A) requiring transparent reporting on gender statistics for various management levels, companies often do not publicly define these management levels. This lack of clarity hampers transparency and the ability to effectively assess and address gender diversity across different tiers of management.
Additionally, even if all companies must report explanations for why gender diversity targets are not met and what actions they have implemented to reach them, only two C25 companies have done so.
Overall, the conclusion is that the lack of transparency due to unclear definitions of management levels and poor reporting standards calls for more rigorous enforcement of the new requirements to drive meaningful progress. By addressing these gaps, companies can better align with legal mandates and contribute to a more inclusive and diverse corporate environment.
Further Insights: For additional insights, such as benchmarks and detailed information on a company level, please get in touch with us here.
