Canada Requires Banks to Share Diversity Info for Boards and Top Leaders
Under new rules announced on Saturday, Canadian banks and other major institutions must now reveal how diverse their boards of directors and top managers are.
This move is very different from the U.S., where the Trump administration has been cutting back on similar diversity efforts, according to Reuters.
The new rules, which take effect immediately, also require these institutions to share their plans for improving diversity when they send out notices for annual shareholder meetings.
The Canadian government said, “Investors don’t have clear or consistent information about the number of women, Indigenous people, people with disabilities, and visible minorities in top leadership roles.” They added that diversity is key to building a strong and successful financial sector that reflects Canadian values.
The Office of the Superintendent of Financial Institutions (OSFI) will enforce these rules. However, their future is uncertain because Canada’s ruling Liberal Party will choose a new leader in March to replace Prime Minister Justin Trudeau. A federal election is also due by October 20, and if the Conservatives win, they might scrap these rules.
This push for diversity in Canada stands in sharp contrast to the U.S., where President Donald Trump has signed orders to roll back diversity, equity, and inclusion (DEI) programs.
While some people support Trump’s actions, advocacy groups worry this could worsen inequality, especially as many U.S. companies move away from ensuring fair representation for marginalized groups.
This summary is based on information from Reuters.