December 12, 2023
Currently, no Canada-wide standard for diversity disclosure exists. However, with increasing demand from investors to provide this data, companies are left to navigate the rules and regulations with no guidance.
As reported by The Globe and Mail, Magna International Inc. is an example of the challenges of this approach. Though its board boasts a diverse group of 53 per cent, its “official disclosure on diversity in its shareholder proxy circular says only 46 per cent of its board is diverse by ‘gender, LGBTQ+ and underrepresented minority in home country’... Magna’s policies, like those of most companies, rely on directors to self-identify which groups they belong to.”
On the topic, partner and co-head of the firm’s Capital Markets practice Rima Ramchandani told The Globe and Mail that “Magna’s challenge with director self-identification is not unique.”
She often advises companies that think one of their directors fits within a diverse category, but that person has chosen not to identify that way. In these cases, Rima encourages businesses to report what the person tells you.
“It isn’t the issuer’s job to police this information of their directors and officers,” she said.
“Most individuals have sufficient lived experience to decide what they’re going to identify as and you should respect that determination.”
You can read more about our Board Advisory and Governance work on our practice page.
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