If there are no male board members, explain why the ratio cannot be calculated and state that the board is fully female.
Annex I, Table I, indicator 13 (board gender diversity). Assume a company has 5 female board members and no male board members. The indicator is defined as follows: Average ratio of female to male board members in investee companies. The use of “ratio .. to” seems to suggest a simple ratio where ‘number of male board members’ would be in the denominator. In the example, the calculation would be 5/0, which is infinite. In other words, is the denominator the number of male board members (0 here) or the number of all board members (5 here)?
This was clarified by the European Commission when they adopted the Delegated Regulation, because indicator 13 in Table 1 of Annex I was changed to add “expressed as a percentage of all board members” at the end of the metric.
European Supervisory Authorities (ESAs)
