Assessing gender theme in European financial institutions: an analysis through a new interval-based composite indicator

Purpose This study aims to assess gender diversity in sustainability reports. This approach is considered crucial for achieving strategic business goals. Examining information gathered from 68 financial firms listed on the EuroStoxx 600 Banks Index and EuroStoxx 600 Insurance Index between 2019 and 2020, the research assesses compliance with Global Reporting Initiative (GRI) 405 guidelines concerning diversity and equal opportunities. Furthermore, the study highlights the role of gender diversity in promoting gender equality within financial institutions, emphasizing its relevance to Sustainable Development Goal (SDG) 5 and the broader agenda for corporate sustainability. Design/methodology/approach A qualitative–quantitative research method was used. The authors first assessed gender diversity using content analysis of sustainability reports. Then, an interval-based composite indicator was constructed to understand the disclosure level of gender diversity in international banking and insurance companies. This approach allows for a more comprehensive evaluation of how financial institutions integrate gender equality principles into their sustainability strategies. Findings Spain, The Netherlands, Great Britain, Ireland and Norway exhibit the best practices in gender diversity disclosure within the banking and insurance sectors. These results are relevant considering that gender diversity in the financial industry is associated with improved performance. Additionally, the findings highlight how institutional pressures influence gender diversity disclosure, reinforcing the role of sustainability reporting as a strategic tool for fostering gender inclusion and corporate governance transparency. Originality/value This paper contributes to the literature on gender diversity and performance measurement in the financial sector by offering a novel perspective on analyzing gender diversity within sustainability reports. It introduces an innovative interval-based Gender Diversity Composite Indicator on GRI standards, providing a comprehensive tool for measuring gender diversity and informing policy decisions. By addressing gender diversity as a key element of corporate governance and sustainable finance, this study provides insights for regulators, policymakers and practitioners seeking to enhance transparency and accountability in gender-related disclosures.