THE FIRST INDEX TO PUT A PRICE ON BIAS.
CONTEXT
Research shows that female leaders are better for business but the market is biased against them. Today, only 7% of CEOs of publicly listed companies around the world are women. Worse still, when they’re actually appointed, biased investors sell their shares and cause stock prices to fall by 2-3%. This bias isn’t just bad for society, it’s a poor investment strategy. By using their platform to reverse it, Europe’s largest investment platform, DEGIRO, saw that they could boost their users’ returns while supporting women in business.
IDEA
Pink Chip is a live index designed to make the success of female leadership impossible to ignore by reframing a moral failure as a financial one. The index tracks the performance of female-led businesses and measures it against industry benchmarks. For the first time, investors could see just how much their bias costs them. By promoting the power of female leadership, Pink Chip also contributes to the UN’s Sustainable Development Goal 5.5: Ensure women’s equal opportunities for leadership in political, economic and public life.
EXECUTION
AI and name recognition software was used to trawl through an extensive data-set of corporate structure filings and create a list of women-led companies, a list that didn’t exist before. That data was then used to create Pink Chip’s first index - Pink Chip U.S.
Thematic, an AI-powered investment research platform, was then enlisted to collect the back-end data on which Pink Chip is built and refresh the list of companies behind the index on a daily basis.
Pink Chip lives primarily on its own website, pinkchip.org, where its performance, the companies featured, and the methodology used to create it are freely available for anyone to access.
IMPACT
Pink Chip has been a financial success, demonstrating conclusively just how powerful female leaders can be. Investors have come onboard in their thousands and it has even been championed by academics who now have an open data-set of female-led companies to use across their research. With an advisory board established across five countries, other investment platforms are in discussions to host Pink Chip, while new indices are in development for additional markets.
“Pink Chip Is Changing The Business World With Data On Women Leadership”
