Women and ethnic minority employees contribute more profit for companies, reveals study

Research found that just 2% diversity at board level increases business profits (Picture: Getty Images)

COMPANIES THAT have higher gender and ethnic diversity perform better by up to 35%, a new study has shown.

Published by Urban Edge Capital (UEC), proven research validated by studies from the McKinsey and Boston Consulting Group suggests that companies with more women and ethnic minorities are excelling with a 2% diversity mix at board level delivering 12% generating more earnings.

The Environment Social Governance (ESG) market is over $12 trillion in global managed assets up by 38% since 2019, yet no one has managed to tackle diversity and inclusion within the social of ESG.

The UEC are the first to succeed in creating a strategy backed by pioneering cutting edge research. A former RAB Capital portfolio manager and Goldman Sachs analyst are exploring the launch of diversity and inclusion-focused investment fund called  (UEC) in London.

CIO Peter Schell and CEO Gibran Registe-Charles have spent the last year building and refining their ESG investment strategy, which combines “quantamental” techniques with their own diversity and inclusion data engine technology to screen global listed companies.

The firm’s strategy seeks to exploit opportunities offered by the social aspect of ESG which which the founders believe is not properly appreciated or understood by the wider financial services industry. Diversity and inclusion has become a household theme since the tragic death of George Floyd over a year ago, but Gibran realised more needed to be done for workplace diversity was while he was working as a political advisor in the European Parliament in 2016.

UEC has also established a charity Urban Generation Trust to help with underprivileged teenagers get access to high profile careers. Less that 12% of portfolio managers in the city of London and within the investment
management industry are black and less than 3% are black women.

Urban Edge Capital, who are based in London, have seen an increase in popularity all through
the COVID-19 pandemic and have the backing of Goldman Sachs, JP Morgan and Bank of America who
all share the ethics and aspirations of having a more gender and ethnically diverse workforce.

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