Capital
ESG-Linked Racial Index Created to Spur Equality Push in Brazil
- Black people make up more than half of Brazil’s population
- They account for less than 30% of leadership at companies
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A group of Brazilian institutes and companies helped create an index to measure racial equality as corporations come under increasing pressure to advance the social component of their environmental, social and governance (ESG) goals.
The ESG Racial Equity Index measures racial imbalances at companies based on workforce composition, average wages and the racial distribution in the region where the company operates, according to the the Pact for the Promotion of Equity, which put together the gauge. Organizations adopting it will be independently audited, and their ratings will be included in their ESG metrics.