Well-defined diversity brings "clear added value" to board work, Varma has said,
emphasising that, if any of the companies it invests in fail to meet its gender diversity target, it will require them to justify this.

Varma said that the election of the board of directors is its most important means of influencing companies, stressing that gender equality is a key consideration in this area.

Indeed, the group suggested that a board of directors made up of members with diverse professional and personal backgrounds is better positioned to have a broad understanding of the demands of the company’s operating environment and be open to new opportunities and innovations.

Progress has been made, as Varma's survey found that out of the 105 Finnish listed companies that participated, just one company had a board of directors with only men as members.

Overall, women account for an average of 39 per cent of board seats in listed Finnish companies within its investment portfolio.

This is just short of the 40 per cent target set by the Finnish Securities Market Association's Corporate Governance Code, which came into effect at the beginning of the year, and recommends that equal representation of women and men be achieved by 30 June 2026 at the latest.

Varma also confirmed that, if a company fails to meet the target, it will be required to provide justification for this.

"Well-defined diversity brings clear added value to board work," Varma vice president corporate responsibility, Hanna Kaskela, said, arguing that diversity should be reflected in the composition of the board as members' complementary competencies, in addition to gender and age distribution.

However, this progress was not universal, as the analysis also explored the gender balance in the 542 foreign listed companies directly owned by Varma, however, revealing that in five of these companies, the boards included members of only one gender.

For its European companies, 39 per cent of board members were women, compared with 36 per cent in North American companies. In Asia, there were fewer women as board members.

In terms of industry, women were most represented in basic industries (43 per cent), such as chemicals, forestry, and mining, and least represented in the telecommunications and communication services sector.

Varma said it supports good governance and adherence to its principles in foreign companies, including promoting good governance through voting at annual general meetings.

The provider also recommended that companies comply with their national corporate governance codes.

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