Question 17

Both BHP and FMG have stated aims to improve gender diversity within their
organisations. Compare their approaches. Which company has been more successful?
What present and future benefits can these companies anticipate consequently?
Gender Diversity @
BHP
• Gender balance - 50% female by 2025.
• 22.4% female leaders in 2019
• Diversity - Jasper drives employee inclusion of
LGBT+, an indigenous focus (target of 5.25%,
achieved 6.5% in FY2020)

Other benefits that support diversity:

• Paid parental leave
• Remote child care services
• Flexible working arrangements
• Gender pay reviews
Gender Diversity @
FMG
• Driving cultural change by appointing women into
board and senior management.
• 50% company board currently
• 26% senior management currently
• 15.8% aboriginal in 2017

Other benefits that support diversity:

• Paid parental leave
• Flexible working arrangements
• Family room and in-home childcare
• Gender pay equity
Key achievements

• Gaines appointed as first mining female CEO in

2017
• Parity Pledge – atleast one female considered
for every job offered
• Member of the 30% club – 30% female
representation on ASX200 boards by 2018
• Bloomberg Gender Equality Index

• Increased board representation of females

significantly since 2019
• 22.4% females in leadership in FY2020
• FY2020 hires were 39.3% female
• More PPE to suit females
 The benefits of gender
diversity – present and
future
This Photo by Unknown Author is licensed under CC BY-NC-ND

• Share price – the market values

female appointments more
• Profitability
• Positive social standing
• Attracting the best candidates
• Wider talent pool
• Staff retention
• Different Perspectives
How do they compare?
• Have taken the lead in the Australian mining industry with the first
appointment of a female CEO. Anglo American did this in 2007 with Cynthia
Carroll - almost 10 years earlier.
• Gender Balance – they have taken a multi pronged approach to achieving
balance – especially empowering from the top – 50% women on the board
and 26% in senior management
• Diversity – currently 15.8% aboriginal, 2017 Supplier Diversity award, Signed
ParityPledge – interview one qualified women for every senior role.
• Overall, the evidence suggests that FMG have and continue to lead the way
on gender diversity.

• Gender Balance - It would appear BHP’s initial stance of female 50% by 2025
is arguably flawed.
• Diversity - aligned with Jasper to employee inclusion of LGBT+, an indigenous
focus (5.75% by FY2020)
• If females are being employed in lower-level jobs to ‘tick the box’, then how is
this fundamentally addressing true female representation.
• Since 2019, it would seem BHP are waking up with the appointment of many
more females to senior management positions.
• BHP have a very tall order to achieve gender balance, is it a little too late?
And will they embrace similar principles as FMG?
References
1. (2020) Fortescue recognised among the best companies globally for women to advance. [Online]. Available from:
https://www.fmgl.com.au/in-the-news/media-releases/2020/07/14/fortescue-recognised-among-the-best-companies-globally-for-
women-to-advance
2. (2019) Fortescue signs Pledge for Gender Parity. [Online]. Available from: https://www.fmgl.com.au/in-the-news/media-
releases/2019/08/20/fortescue-signs-pledge-for-gender-parity
3. (2020) fy20-annual-report-and-4e. [Online]. Available from: https://www.fmgl.com.au/docs/default-source/announcements/fy20-annual-
report-and-4e.pdf?sfvrsn=c3642b54_4
4. Zakharia, N. (2014) Fortescue listed among top companies for female career advancement. [Online]. Available from:
https://www.australianmining.com.au/news/fortescue-listed-among-top-companies-for-female-career-advancement/
5. (2019) FMG commits to gender parity. [Online]. Available from: https://www.miningnews.net/leadership/news/1369776/fmg-commits-to-
gender-parity
6. Batten, K. (2020) FMG a top place for women. [Online]. Available from: https://www.miningnews.net/leadership/opinion/1390933/fmg-
top-place-for-women
7. Adams, R.; Gray, S; Nowland, J (2011) Does Gender Matter in the Boardroom? Evidence from the Market Reaction to Mandatory New
Director Announcements. [Online]. Available from: SSRN: https://ssrn.com/abstract=1953152 or http://dx.doi.org/10.2139/ssrn.1953152
8. (2017) Fortescue recognised for its practical approach to diversity. [Online]. Available from: https://www.fmgl.com.au/in-the-news/media-
releases/2017/08/28/fortescue-recognised-for-its-practical-approach-to-diversity
9. MacKenzie, A; Davis, M. (2019)BHP CEO BACKS INDIGENOUS VOICE TO PARLIAMENT [Online]. Available from:
https://www.ceda.com.au/NewsAndResources/News/Indigenous-affairs/BHP-CEO-backs-Indigenous-voice-to-parliament
10. [Online]. Available from: bhp.com/sustainability/people/inclusion-and-diversity/
11. Anderson, B. (2017) 4 STEPS BHP HAS TAKE ... [Online]. Available from: https://www.top100women.com.au/4-steps-bhp-has-taken-to-
bring-gender-parity-to-a-male-dominated-industry/