A total of 69 signatories representing the Luxembourg financial sector on Wednesday marked International Women’s Day 2023 by signing the newly launched Luxembourg Women in Finance Charter, seeking to improve gender diversity in the grand duchy’s financial centre.
The initiative, supported by the Luxembourg finance ministry, seeks to achieve greater gender balance and inclusivity across the Luxembourg financial services industry. Finance minister Yuriko Backes will act as the charter’s patron.
"Gender equality is not just a social issue,” Backes said at the launch. “Diversity and gender equality are macro-critical and make economic sense: more diversity leads to better decision-making and better economic outcomes for companies and for society.”
Meanwhile, new data released on Wednesday by data firm Prequin said the percentage of women holding general and limited partner roles in hedge funds in Europe has fallen to just 8 percent in 2023 from 17.4 percent in 2021.
Yearly progress report
The charter supports monitoring progress on increasing gender balance in senior management. The signatories, which includes trade associations ABBL, ALfi and Aca and some 31 Luxembourg banks, commit to annual reporting in order to strengthen their organisation's sense of commitment. The Ministry of Finance, working with the financial sector associations, will support the publication of a yearly progress report based on the individual target setting.
Luxembourg fund management association Alfi said it promotes the initiative because it is convinced that diversity and inclusion improve workplace culture; are correlated with profitability and value creation; enhance innovation and creativity; help society function more effectively and fairly; and will foster Luxembourg’s talent pool.
Alfi said it has been supporting diversity and inclusion efforts and in particular the increase of gender balance for a few years now. Working group members, speakers at conferences and events are selected by paying particular attention to diversity.
‘Pivotal’
“The Charter will be pivotal in holding the financial sector in Luxembourg accountable for promoting gender equality,” said Alfi chair Corinne Lamesch. “By encouraging firms to set targets, monitor and report on progress, I am hopeful that the Charter will foster real change and increase female representation at all levels in the financial sector.”
Banking association ABBL said 31 of its 96 members have now signed the charter. The ABBL itself also is a signatory to charter.
“Diversity is not just a matter of social responsibility. It also has a fundamental role in the performance and sustainability of companies in a changing world,” said Catherine Bourin, member of the ABBL's executive committee and initiator of the association's diversity, equity and inclusion working group.
