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study
Authors: Emily Jasper, Malav Parekh, Diana Peters
Contributors: Patrice Calise, Lauren Costello, Carla Donaghey, Conner Forrest, Ellen Jensen, Sheryl Kingstone, James Mantooth, Chris Marsh, Diana Mumford, April Pascual
Published: June 26, 2023
It has been 54 years since the Stonewall uprising, whose anniversary is now celebrated as Pride Month, but the LGBTQ+ community continues to see surging hate crimes, social media abuse, action by various governments, and disturbing anti-LGBTQ+ rhetoric by powerful politicians and business personalities.
For instance, according to the UCLA School of Law’s Williams Institute, Europe boasts the highest social acceptance for the community. Yet 2022 was Europe’s “most violent year for LGBTI people” in the past decade, “both through planned, ferocious attacks and through suicides in the wake of rising and widespread hate speech from politicians, religious leaders, right-wing organizations and media pundits,” according to a February 2023 report by ILGA-EUROPE, a non-profit LGBTQ+ rights organization.
While progress has stalled for many in the LGBTQ+ community, the corporate space has shown positive momentum toward inclusion, yet with more to be accomplished, according to our report’s findings.
June marks the anniversary of the Stonewall uprising, a landmark event triggered by police violence against the LGBTQ+ community in New York on June 28, 1969. This led to protests and rebellious acts in the city and helped to spark the fight for LGBTQ+ equality around the world. The AIDS crisis and legalization of gay marriage in the US are some of the other events that shape the current awareness of LGBTQ+ issues.
Globally, the LGBTQ+ community faces continued discrimination. Sixty-seven countries criminalize LGBTQ+ acts, including 11 countries with the death penalty, according to data from the Human Dignity Trust, a non-profit organization that provides pro bono legal support for LGBTQ+ community globally. This is four fewer than a year ago, but hate crimes, including violence and harassment, against LGBTQ+ individuals are far more prevalent globally. Yet there have also been some positives, such as US President Joe Biden’s call for LGBTQ+ protections, a Japanese court ruling that a ban on same-sex marriage is unconstitutional, and an increasing acceptance of the community among global businesses. The findings of this report demonstrate how discourse supportive of the LGBTQ+ community is growing among organizations across the globe, albeit at a slow and uneven pace.
Despite recent anti-LGBTQ+ rhetoric, the US remains the country with the highest proportion (53%) of sustainability-focused organizations, or firms that have filed at least one ESG filing since the beginning of 2020, citing LGBTQ+ at least once in their ESG filings, followed by Brazil, according to a global business filings and transcripts analysis leveraging S&P Global’s proprietary AI technology. Overall, the Americas led the rest of the world in organizations with a pro-LGBTQ+ stance. Also, according to the findings, a financial services organization is most likely to report pro-LGBTQ+ initiatives in its sustainability filings. The data includes filings for 2020, 2021, 2022, and year-to-date 2023 as of June 15, 2023.
The continuation of discourse is essential not just from the human rights angle but also for the future of work. For instance, about 7.2% of the US population identifies as LGBT, nearly double a decade ago, according to a 2022 recent Gallup poll. More importantly, nearly a fifth of those born between 1997 and 2004 in the US identify as LGBT, according to the poll, indicating the community's likely dramatic impact on the future workforce. As a result, LGBTQ+ initiatives frequently form an integral part of the diversity, equity and inclusion (DEI) programs that have emerged as top focus areas for many organizations. However, LGBTQ+ rights advocates have concerns about whether many of these efforts are just “pink washing,” a term applied when brands superficially say they support a cause or change their logo in a performative manner without follow-on action.
Figure 1 - Around the world, Americas lead the mentions of LGBTQ+ issues by corporations, APAC lags
Data as of June 15, 2023.
Keyword LGBT refers to lesbian, gay, bisexual, transgender, but was used to track other related terms such as LGBTQ and LGBTQI+. The terms LGBTQI+ also includes queer, intersex and further sexual and/or gender identities.
* LGBT mention rate = Unique companies with ESG filings with LGBT mention/total unique companies with ESG filings.
Regional averages are weighted based on overall number of mentions and ESG filings for countries with ESG filings in Global English.
Source: S&P Global Market Intelligence.
© 2023 S&P Global.
In this 2023 whitepaper, building on a study published by S&P Global in Pride Month 2022, S&P Global Market Intelligence puts the spotlight on the LGBTQ+ community’s place in key organizational discourse surrounding corporate sustainability, as well as the growing focus on the community amid attacks both within and outside the US. We assessed visibility by searching the S&P Global Market Intelligence Machine-Readable Transcripts and Machine-Readable Filings datasets for LGBTQ+ keywords in ESG filings.
ESG filings are compiled from a repository of environmental, social, and governance (ESG)-focused documents which S&P Global Market Intelligence obtains from publicly available sources. These document types can include Sustainability Reports, Corporate Social Responsibility Reports, Corporate Governance Reports, Environmental Reports, and Task Force on Climate-related Financial Disclosure (TCFD) Reports.
Many organizations are emphasizing diversity, equity and inclusion, responding to growing DEI awareness among consumers and employees, especially in younger demographics, as well as to regulatory pressure.
In the US, a majority of HR professionals believe that investing more time and resources into DEI is the topmost priority (53%) in supporting their company and equipping employees for the future of work, according to the Workforce Productivity & Collaboration (WPC): Employee Lifecycle 2023 survey conducted by 451 Research, a part of S&P Global Market Intelligence. Additionally, a third of all HR professionals surveyed believe workforce diversity initiatives will be the most important strategic focus for their organization’s HR function over the next two years.
DEI efforts not only help with the development of an organization’s public brand, but they also play a key role in supporting employee retention and recruitment — key macroeconomic priorities for many businesses.
Recent regression analysis of data from 451 Research's Voice of the Enterprise: Workforce Productivity & Collaboration, Employee Engagement 2022 survey shows that a sense of belonging is one of the top drivers of positive employee engagement, and DEI efforts like employee resource groups (ERGs) or people resource groups (PRGs) can help support that.
While anti-LGBTQ+ regulations and rhetoric might be on the rise, nearly 20% of Gen Z (born between 1997 and 2004) in the US identifies as LGBTQ+, according to a recent Gallup poll. That’s nearly 20% of the workforce under 26, indicating the dramatic impact the community is likely to have on the future workforce. As discussed on the Next in Tech podcast from S&P Global Market Intelligence on June 8, the LGBTQ+ community can be more likely to experience difficulties in entering the workforce due to lack of accessible support.
According to the 2021 National Survey on LGBTQ Youth Mental Health, 28% of LGBTQ+ youth in the US reported experiencing homelessness. Inconsistent access to internet, lack of skills with basic workforce applications, or food insecurity can impact an employer’s perception on the viability of a job candidate. Lack of resources often affect the quality of a job application, which when coupled with anti-LGBTQ+ bias, could lead the hiring manager to assume that the candidate is unqualified. Without considering these deficiencies, firms will contribute to ongoing underemployment, missing out on talent and potentially add to homelessness among Gen Z.
DEI efforts can help on the front end of the employee lifecycle, encouraging recruitment of talent that could have been previously overlooked.
Scope of this research
In this research, we leveraged S&P Global’s proprietary AI capabilities to analyze filings and call transcripts of 14,000 organizations across the globe. We combined the AI analysis with the internal and external survey capabilities of 451 Research’s WPC team and S&P Global’s Pride LGBTQ+ & Friends People Resource Group (PRG). The cross-divisional collaboration aims to reflect S&P Global’s strong DEI focus and the growing need to build awareness of LGBTQ+ issues worldwide.
We also completed a second survey May 17 through May 24, 2023, of the same questionnaire from 2022, as posed to our Pride PRG membership. We received 140 responses that have provided context to some of the shifts in perception about LGBTQ+ data collection and focus from firms within the respondents’ own experiences.
This combination of quantitative and qualitative research aims to provide a better understanding of the current state of LGBTQ+ inclusion in the workplace and to offer ideas on how companies can achieve holistic DEI.
Clarification of terms
LGBTQ+ stands for lesbian, gay, bisexual, transgender, queer and more, and is used as the main term in this article. At times, the terms LGBT, LGBTQ, LGBTIQ or LGBTQI will be found when referring to external literature, to ensure consistency with the term used by the research cited.
There are a vast array of identities or labels those in the LGBTQ+ community may choose, if they wish to use one at all. Although it may seem insensitive to only list out the more common labels and use a broad bucket to classify people, the use of the “+” ensures that the LGBTQ+ community is not restricted to the five common terms, and the potentially infinite numbers of additional identities are acknowledged.
To avoid simplifying people’s experiences, we have decided not to systematically include the “I” in this article. Being intersex (“I”) is still argued not to represent either a sexual orientation or a gender identity, and therefore not to be automatically associated with issues affecting LGBTQ+ people. Yet being intersex can raise unique challenges that need consideration, even if these are distinct from the issues facing the wider LGBTQ+ community.
LGBTQ+ awareness in business
While our 2022 report delved into the lack of public disclosure of LGBTQ+ workforce data, this report focuses on measuring the visibility organizations are giving to LGBTQ+ issues globally. We determined this visibility by tracking mentions of “LGBT” in environmental, social and governance (ESG) filings, as available in S&P Global Market Intelligence’s Machine Readable Filings and Machine Readable Transcripts datasets. Although results are uneven across the globe, the biggest positive takeaway, from a DEI standpoint, is a clear uptick in citations of the community in key events and sustainability filings.
The analysis revealed 2,451 unique companies globally mentioned LGBTQ+ and related terms at least once in an ESG filing between 2020-2023 (year-to-date). In comparison, there were 10,173 unique companies that published at least one ESG filing during that period. This indicates that only 24% of global businesses with commitment to ESG have any focus on LGBT. About 52 countries [see Figure 1], ranging from the US to Chile to the tiny island of Guernsey, have at least one company that has favorably discussed LGBTQ+ issue in ESG filings since 2020.
The countries with the highest LGBT mention rate in Global English [1] include the United States, Brazil and Ireland at 53%, 51% and 45% respectively, from total filings beginning Jan. 1, 2020.
The Americas led the rest of the world in proportion of sustainability-focused organizations openly supportive of the LGBTQ+ community. Besides the US, North American countries such as Canada, Mexico and Bermuda had high focus on the community in their ESG filings. Latin American countries were not too far behind with Brazil leading the pack, and Argentina and Chile also reporting filings with focus on LGBTQ+ issues, despite a small sample size of filings in Global English.
Companies based in Western European countries were more likely than their Eastern European counterparts to include LGBTQ+ issues as part of their sustainability efforts. Data on Africa was sparse, but South Africa stood out, ranking thirteenth in LGBTQ+ mention rate globally.
The Asia-Pacific region was found to have the lowest LGBT mention rate, but moderate support for the community was found among businesses in Japan (24%), Australia (23%) and Thailand (22%). While awareness on LGBTQ+ issues is gaining momentum among businesses in key APAC countries, same-sex marriage is still illegal in most of the APAC region, except in Taiwan and Australia.
In fact, the Indian government is currently contesting legalization of same-sex marriages in the Supreme Court. Whatever the outcome, the country’s LGBTQ+ community will continue to face uncertainty amid various manifestations of official disapproval. The Supreme Court itself has been known to reverse a positive judgment in the past. The Delhi High Court decriminalized gay sex in 2009, only for the Supreme Court to reinstate the ban in 2013. The ban was later lifted in 2018.
Figure 2: Steady rise in organizations specifically addressing LGBT issues in ESG filings
Data as of June 20, 2023.
LGBT mention rate = unique companies with ESG filings with LGBT mention/total unique companies with ESG filings.
Keyword LGBT refers to lesbian, gay, bisexual, transgender, but was used to track other related terms such as LGBTQ and LGBTQI+. The terms LGBTQI+ also includes queer, intersex and further sexual and/or gender identities.
n = Total companies with ESG filings in that period.
Source: S&P Global Market Intelligence.
© 2023 S&P Global.
Nearly one in four (24%) of organizations globally that published ESG filings in 2022 mentioned LGBT at least once in their filings. While this is still a small figure, it has grown steadily from 19% in 2020 to 24% in 2022. Notably, there was a sharp decline in ESG filings in 2022. While fewer filings could be a result of increasing backlash against ESG investments at organizations, according to a report by Axios, or an impact of organizational cost cuts, the decline may also result from a filings delay.
Top mentions were related to awards won, establishment or growth of employee resource groups, and formal commitment to DEI practices.
“Komatsu is improving its programs and systems to establish an in-house consultation desk concerning LGBTQ, recognize same-sex partnerships, and expand the scope of applications concerning welfare benefits, holidays, and leave of absence. It is also working to foster a better understanding of LGBTQ through e-learning designed for managers in order to create workplaces where all employees feel comfortable working.”
Figure 3: Financials, Industrials, and Consumer Discretionary industries lead LGBT mentions
Data as of June 20, 2023.
Keyword LGBT refers to lesbian, gay, bisexual, transgender, but was used to track other related terms such as LGBTQ and LGBTQI+. The terms LGBTQI+ also includes queer, intersex and further sexual and/or gender identities.
n = Total companies with ESG filings in that period.
Period: 2020, 2021, 2022, 2023 (YTD).
Source: S&P Global Market Intelligence
© 2023 S&P Global.
LGBTQ+ keyword mentions vary across a wide range of industries, with Financials, Industrials and Consumer Discretionary firms leading the quantity of mentions across the filings. Banks made mentions in areas of employee resource programs and awards, whereas Specialty Retailers under Consumer Discretionary included brand or campaign messages related to Pride Month and product releases.
We find diverse mentions of LGBTQ+ keywords cover many of the concerns held not only by employees, but also by investors and outside groups.
Employees may not be aware of executive-level discussions of LGBTQ+ issues, such as in the example below. In our view, increased LGBTQ+ mentions to the market can potentially provide comfort to employees; however, employees will also take away negative perceptions when responses during executive forums reject or dismiss concerns over anti-LGBTQ+ policies.
“Similarly, AT&T says that it is ‘committed to supporting organizations and projects that strengthen the LGBT community.’ But AT&T is also associated with legislation in Texas that seeks to classify gender-affirming care as child abuse.
“Other incongruences seem to exist around restrictive voting legislation and in the company's involvement with a lobbying group, slowing US climate legislation. A report from AT&T assessing where its political involvement may be contrary to its public positions is expected to reduce risk to the company's brand, strengthen oversight and reassure investors.”
S&P Global’s 2022 Impact Report
S&P Global strives to create an environment that encourages our colleagues around the world to have a deep sense of belonging, where they feel empowered to contribute their unique insights within our company, with our customers and in our communities. We invest in our company by investing in our people. In 2022, we published our first stand-alone DEI Report, released alongside our Impact Report. After a year of transformation, we continue to drive systemic equity in all our processes, policies and practices. We have:
Figure 4: S&P Global US employee representation as self-identified year over year
Data reflects self-identified ethnicity for U.S. employees as of December 31, 2022.
All of S&P Global excluding CRISIL, CARFAX and Taiwan Ratings Corp. 2022 data is post-merger and includes the IHS Markit employee population.
Source: S&P Global Market Intelligence.
© 2023 S&P Global.
S&P Global Pride PRG survey highlights need to build intersectionality awareness
At S&P Global, to provide additional context and transparency in complement to our data-driven analysis, we have utilized an internal survey of our Pride LGBTQ+ & Friends PRG employees that gives a closer look at attitudes around LGBTQ+ issues in our organization. The LGBTQ+ attitudes we identified internally include concern about data handling and potential retaliation or internal prejudice toward LGBTQ+ individuals who disclose their status to an organization, despite more collective awareness about the population and their distinct needs. The PRG survey showed a significant decrease (15 percentage points) in respondents who believe that collecting data on employees identifying as LGBTQ+ is “very relevant” (31%) and a dramatic increase (17 percentage points) in respondents who are “unsure” (23%) about the relevance of the data collection. Overall, sentiment indicated that the organization should do more with the data to support LGBTQ+ employees, whether through benefits expansion, leadership development or geographic support.
Figure 5 - Employee survey: How relevant do you believe it is to collect data on the percentage of employees identifying as LGBTQI+?
Data as of May 2023.
LGBTQI+ refers to lesbian, gay, bisexual, transgender, queer, intersex and further sexual and/or gender identities.
Based on 104 responses to a survey sent to members of the S&P Global Pride LGBTQ+ & Friends People Resource Group in 2022, and 140 responses in 2023.
Source: S&P Global internal survey of members of the S&P Global Pride LGBTQ+ & Friends People Resource Group.
©2023 S&P Global.
Our internal survey and our broader review of corporate filings lead us to the following considerations regarding LGBTQ+ data collection. On the one hand, firms collecting data on workplace make-up and diversity can be more informed for making strategic decisions, tracking progress and identifying areas of investment. For example, expanding health care benefits to include gender affirmation surgery could depend on identifying a target volume of the employee and dependent population that would utilize the benefit.
Yet we also know there are limitations on what can be asked and collected, especially related to privacy and labor laws globally. When data can be collected, there is no globally consistent categorization for individuals who identify as LGBTQ+. For instance, some companies only collect data on sexual orientation, while other companies also consider non-binary gender identities.
Finally, we must also acknowledge employees are not always comfortable sharing this information. In the changing climate around LGBTQ+ issues, there is fear of discrimination or retaliation if this information is not secured. Post-COVID-19 workplaces have also allowed individuals to establish firmer work-home life boundaries, in some cases creating a negative perception of sharing personal information in a workplace setting. Firms must be able to demonstrate to employees the integrity of the data collection effort, assurances of anonymity for the voluntary disclosure, and clear explanations of how the information is to be collected and applied in the workplace.
Yet increases in virtual aspects of the workplace may be finally impacting the perception of awareness of identities and experiences for the LGBTQ+ community within companies. Many firms are encouraging employees to “bring their whole selves to work,” an effort to respect the intersectionality of gender, race, ethnicity, disability, religion and more. Still, our employee survey has indicated an uptick in “No Awareness,” suggesting a need to do more to build awareness and understanding. Part of the solution may involve ensuring sufficient rapport-building time in virtual meetings, allowing employees sufficient opportunities to share different parts of their identities. If diverse qualities are shared as part of day-to-day operations, managers may find it easier to support diverse candidates’ career development.
Figure 6 - Employee survey: How much awareness do you think there is on the diversity of identities and experiences for the LGBTQI+ community within companies?
Data as of May 2023.
LGBTQI+ refers to lesbian, gay, bisexual, transgender, queer, intersex and further sexual and/or gender identities.
Based on 104 responses to a survey sent to members of the S&P Global Pride LGBTQ+ & Friends People Resource Group in 2022, and 140 responses in 2023.
Source: S&P Global Internal Survey of members of the S&P Global Pride LGBTQ+ & Friends People Resource Group.
©2023 S&P Global.
Pride PRG survey results show employers there’s room for improvement
S&P Global has launched a string of initiatives for the community, including the Pride PRG, and about 87% of respondents to our internal survey have reported at least some focus on LGBTQI+ in the workplace during the past five years. Yet LGBTQ+ and ally employees feel that more needs to be done for this cause in workplaces overall, according to responses to the Pride PRG survey. The survey responses reflect perceptions of S&P Global as a current employer as well as of former employers and of companies in the market. Qualitative responses to this question indicated frustration when a firm does not make public statements or revise customer/vendor policies in the face of anti-LGBTQ+ policies and rhetoric. A lack of firm support from current employers and brands in the market, including 2023 Pride Month backtracking by Budweiser and Target, can exacerbate such frustrations. “Pink washing” or “rainbow washing” are terms often used to label firms that capitalize on the color and joy of Pride month but do not support employees in practice. Perception can deter employees from utilizing LGBTQ+ benefits and programs, despite the reality of their availability.
Figure 7 - Employee survey: Do you think there has been more focus on LGBTQI+ in the workplace during the past five years?
Data as of May 2023.
LGBTQI+ refers to lesbian, gay, bisexual, transgender, queer, intersex and further sexual and/or gender identities.
Based on 104 responses to a survey sent to members of the S&P Global Pride LGBTQ+ & Friends People Resource Group in 2022, and 140 responses in 2023.
Source: S&P Global Internal Survey of members of the S&P Global Pride LGBTQ+ & Friends People Resource Group.
©2023 S&P Global.
Even within the membership of S&P Global’s Pride PRG, a survey respondent indicated, “As a cisgendered heterosexual, I do not have to self-identify my preferences, so why should someone who is a member of the LGBTQ+ community feel compelled?” A statement such as this indicates an opportunity for further education on behalf of S&P Global and all employers. Without clear understanding of why the data is helpful, biased assumptions can persist that each population’s needs are no different, reducing equitable outcomes for the sake of perceived equality.
At the end of the day, firms cannot stop mentioning LGBTQ+ issues, collecting data, or applying expanded programs and policies for the LGBTQ+ community, just because it might be unclear to employees why this is important for inclusive practices. While fear about privacy and security may persist, it is the actions taken by firms that often set the tone for whether LGBTQ+ employees feel seen and included.
“If you want people to feel more safe to disclose their identity, the company should openly and strongly support LGBTQIA+ people in their actions by putting their political and monetary weight behind queer people and people of color. Sign along with petitions against anti-LGBTQIA+ bills, provide gender-affirming care in our healthcare benefits, etc. Put money and intention and action to make yourself a safe place to work.”
– Response from survey of S&P Global Pride LGBTQ+ & Friends People Resource Group
In their open-text comments, respondents to our survey said that support for the LGBTQ+ community needs to come from management and senior leadership to illustrate a company’s strong commitment to DEI. When possible, executives and leaders feeling free to disclose their identification as LGBTQ+ can demonstrate trust in the process and also the existence of leadership positions and opportunities for members of this community. Inclusive language, such as using “they” instead of “he/she” or “partner(s)” instead of “wife/husband” can also play a large role in creating inclusivity.
S&P Global recognizes that we have room to improve the equitability of our approach to sustainability issues across all the geographies where we do business. As we strive to be more inclusive, we can leverage estimates as a proxy of LGBTQ+ employees within regions where we cannot collect that data. By ensuring benefits and policies are evaluated globally, individuals in any given location can know they are supported and accepted within the firm.
Pressure from homophobic groups and anti-LGBTQ+ regulations are affecting the LGBTQ+ community, but many businesses are paving the way for inclusion and acceptance. Seeing support for LGBTQ+ community in countries such as India and Japan, despite challenges in official government recognition, and strong public and legislative support in places like South Africa, Sri Lanka and large parts of the Americas and Western Europe, should give hope to all communities that value diversity.
Firms continuing to express support for the LGBTQ+ community must also acknowledge that many of the greatest advocates are volunteers within their organizations. In addition to elevating employee voices and creating opportunities for visibility, the business should ask itself — should volunteers be leading business transformation at a firm? How great could the impact be if for every public mention, there were actionable changes to benefits, investments and more? Our internal Pride PRG Member survey indicated that employees are hungry for firms to take action, including shaping those highly invested volunteers into the future management and executive leadership who make decisions about benefits, investments and inclusion each day. Look within for the opportunity to transform.
Appendix
Survey questions:
Global English is a style of language meant to be precise and literal, typically used for machine reading and non-native English speakers.
It has been 54 years since the Stonewall uprising, whose anniversary is now celebrated as Pride Month, but the LGBTQ+ community continues to see surging hate crimes, social media abuse, action by various governments, and disturbing anti-LGBTQ+ rhetoric by powerful politicians and business personalities.
For instance, according to the UCLA School of Law’s Williams Institute, Europe boasts the highest social acceptance for the community. Yet 2022 was Europe’s “most violent year for LGBTI people” in the past decade, “both through planned, ferocious attacks and through suicides in the wake of rising and widespread hate speech from politicians, religious leaders, right-wing organizations and media pundits,” according to a February 2023 report by ILGA-EUROPE, a non-profit LGBTQ+ rights organization.
While progress has stalled for many in the LGBTQ+ community, the corporate space has shown positive momentum toward inclusion, yet with more to be accomplished, according to our report’s findings.
June marks the anniversary of the Stonewall uprising, a landmark event triggered by police violence against the LGBTQ+ community in New York on June 28, 1969. This led to protests and rebellious acts in the city and helped to spark the fight for LGBTQ+ equality around the world. The AIDS crisis and legalization of gay marriage in the US are some of the other events that shape the current awareness of LGBTQ+ issues.
Globally, the LGBTQ+ community faces continued discrimination. Sixty-seven countries criminalize LGBTQ+ acts, including 11 countries with the death penalty, according to data from the Human Dignity Trust, a non-profit organization that provides pro bono legal support for LGBTQ+ community globally. This is four fewer than a year ago, but hate crimes, including violence and harassment, against LGBTQ+ individuals are far more prevalent globally. Yet there have also been some positives, such as US President Joe Biden’s call for LGBTQ+ protections, a Japanese court ruling that a ban on same-sex marriage is unconstitutional, and an increasing acceptance of the community among global businesses. The findings of this report demonstrate how discourse supportive of the LGBTQ+ community is growing among organizations across the globe, albeit at a slow and uneven pace.
Despite recent anti-LGBTQ+ rhetoric, the US remains the country with the highest proportion (53%) of sustainability-focused organizations, or firms that have filed at least one ESG filing since the beginning of 2020, citing LGBTQ+ at least once in their ESG filings, followed by Brazil, according to a global business filings and transcripts analysis leveraging S&P Global’s proprietary AI technology. Overall, the Americas led the rest of the world in organizations with a pro-LGBTQ+ stance. Also, according to the findings, a financial services organization is most likely to report pro-LGBTQ+ initiatives in its sustainability filings. The data includes filings for 2020, 2021, 2022, and year-to-date 2023 as of June 15, 2023.
The continuation of discourse is essential not just from the human rights angle but also for the future of work. For instance, about 7.2% of the US population identifies as LGBT, nearly double a decade ago, according to a 2022 recent Gallup poll. More importantly, nearly a fifth of those born between 1997 and 2004 in the US identify as LGBT, according to the poll, indicating the community's likely dramatic impact on the future workforce. As a result, LGBTQ+ initiatives frequently form an integral part of the diversity, equity and inclusion (DEI) programs that have emerged as top focus areas for many organizations. However, LGBTQ+ rights advocates have concerns about whether many of these efforts are just “pink washing,” a term applied when brands superficially say they support a cause or change their logo in a performative manner without follow-on action.
Figure 1 - Around the world, Americas lead the mentions of LGBTQ+ issues by corporations, APAC lags
Data as of June 15, 2023.
Keyword LGBT refers to lesbian, gay, bisexual, transgender, but was used to track other related terms such as LGBTQ and LGBTQI+. The terms LGBTQI+ also includes queer, intersex and further sexual and/or gender identities.
* LGBT mention rate = Unique companies with ESG filings with LGBT mention/total unique companies with ESG filings.
Regional averages are weighted based on overall number of mentions and ESG filings for countries with ESG filings in Global English.
Source: S&P Global Market Intelligence.
© 2023 S&P Global.
In this 2023 whitepaper, building on a study published by S&P Global in Pride Month 2022, S&P Global Market Intelligence puts the spotlight on the LGBTQ+ community’s place in key organizational discourse surrounding corporate sustainability, as well as the growing focus on the community amid attacks both within and outside the US. We assessed visibility by searching the S&P Global Market Intelligence Machine-Readable Transcripts and Machine-Readable Filings datasets for LGBTQ+ keywords in ESG filings.
ESG filings are compiled from a repository of environmental, social, and governance (ESG)-focused documents which S&P Global Market Intelligence obtains from publicly available sources. These document types can include Sustainability Reports, Corporate Social Responsibility Reports, Corporate Governance Reports, Environmental Reports, and Task Force on Climate-related Financial Disclosure (TCFD) Reports.
Many organizations are emphasizing diversity, equity and inclusion, responding to growing DEI awareness among consumers and employees, especially in younger demographics, as well as to regulatory pressure.
In the US, a majority of HR professionals believe that investing more time and resources into DEI is the topmost priority (53%) in supporting their company and equipping employees for the future of work, according to the Workforce Productivity & Collaboration (WPC): Employee Lifecycle 2023 survey conducted by 451 Research, a part of S&P Global Market Intelligence. Additionally, a third of all HR professionals surveyed believe workforce diversity initiatives will be the most important strategic focus for their organization’s HR function over the next two years.
DEI efforts not only help with the development of an organization’s public brand, but they also play a key role in supporting employee retention and recruitment — key macroeconomic priorities for many businesses.
Recent regression analysis of data from 451 Research's Voice of the Enterprise: Workforce Productivity & Collaboration, Employee Engagement 2022 survey shows that a sense of belonging is one of the top drivers of positive employee engagement, and DEI efforts like employee resource groups (ERGs) or people resource groups (PRGs) can help support that.
While anti-LGBTQ+ regulations and rhetoric might be on the rise, nearly 20% of Gen Z (born between 1997 and 2004) in the US identifies as LGBTQ+, according to a recent Gallup poll. That’s nearly 20% of the workforce under 26, indicating the dramatic impact the community is likely to have on the future workforce. As discussed on the Next in Tech podcast from S&P Global Market Intelligence on June 8, the LGBTQ+ community can be more likely to experience difficulties in entering the workforce due to lack of accessible support.
According to the 2021 National Survey on LGBTQ Youth Mental Health, 28% of LGBTQ+ youth in the US reported experiencing homelessness. Inconsistent access to internet, lack of skills with basic workforce applications, or food insecurity can impact an employer’s perception on the viability of a job candidate. Lack of resources often affect the quality of a job application, which when coupled with anti-LGBTQ+ bias, could lead the hiring manager to assume that the candidate is unqualified. Without considering these deficiencies, firms will contribute to ongoing underemployment, missing out on talent and potentially add to homelessness among Gen Z.
DEI efforts can help on the front end of the employee lifecycle, encouraging recruitment of talent that could have been previously overlooked.
Scope of this research
In this research, we leveraged S&P Global’s proprietary AI capabilities to analyze filings and call transcripts of 14,000 organizations across the globe. We combined the AI analysis with the internal and external survey capabilities of 451 Research’s WPC team and S&P Global’s Pride LGBTQ+ & Friends People Resource Group (PRG). The cross-divisional collaboration aims to reflect S&P Global’s strong DEI focus and the growing need to build awareness of LGBTQ+ issues worldwide.
We also completed a second survey May 17 through May 24, 2023, of the same questionnaire from 2022, as posed to our Pride PRG membership. We received 140 responses that have provided context to some of the shifts in perception about LGBTQ+ data collection and focus from firms within the respondents’ own experiences.
This combination of quantitative and qualitative research aims to provide a better understanding of the current state of LGBTQ+ inclusion in the workplace and to offer ideas on how companies can achieve holistic DEI.
Clarification of terms
LGBTQ+ stands for lesbian, gay, bisexual, transgender, queer and more, and is used as the main term in this article. At times, the terms LGBT, LGBTQ, LGBTIQ or LGBTQI will be found when referring to external literature, to ensure consistency with the term used by the research cited.
There are a vast array of identities or labels those in the LGBTQ+ community may choose, if they wish to use one at all. Although it may seem insensitive to only list out the more common labels and use a broad bucket to classify people, the use of the “+” ensures that the LGBTQ+ community is not restricted to the five common terms, and the potentially infinite numbers of additional identities are acknowledged.
To avoid simplifying people’s experiences, we have decided not to systematically include the “I” in this article. Being intersex (“I”) is still argued not to represent either a sexual orientation or a gender identity, and therefore not to be automatically associated with issues affecting LGBTQ+ people. Yet being intersex can raise unique challenges that need consideration, even if these are distinct from the issues facing the wider LGBTQ+ community.
LGBTQ+ awareness in business
While our 2022 report delved into the lack of public disclosure of LGBTQ+ workforce data, this report focuses on measuring the visibility organizations are giving to LGBTQ+ issues globally. We determined this visibility by tracking mentions of “LGBT” in environmental, social and governance (ESG) filings, as available in S&P Global Market Intelligence’s Machine Readable Filings and Machine Readable Transcripts datasets. Although results are uneven across the globe, the biggest positive takeaway, from a DEI standpoint, is a clear uptick in citations of the community in key events and sustainability filings.
The analysis revealed 2,451 unique companies globally mentioned LGBTQ+ and related terms at least once in an ESG filing between 2020-2023 (year-to-date). In comparison, there were 10,173 unique companies that published at least one ESG filing during that period. This indicates that only 24% of global businesses with commitment to ESG have any focus on LGBT. About 52 countries [see Figure 1], ranging from the US to Chile to the tiny island of Guernsey, have at least one company that has favorably discussed LGBTQ+ issue in ESG filings since 2020.
The countries with the highest LGBT mention rate in Global English [1] include the United States, Brazil and Ireland at 53%, 51% and 45% respectively, from total filings beginning Jan. 1, 2020.
The Americas led the rest of the world in proportion of sustainability-focused organizations openly supportive of the LGBTQ+ community. Besides the US, North American countries such as Canada, Mexico and Bermuda had high focus on the community in their ESG filings. Latin American countries were not too far behind with Brazil leading the pack, and Argentina and Chile also reporting filings with focus on LGBTQ+ issues, despite a small sample size of filings in Global English.
Companies based in Western European countries were more likely than their Eastern European counterparts to include LGBTQ+ issues as part of their sustainability efforts. Data on Africa was sparse, but South Africa stood out, ranking thirteenth in LGBTQ+ mention rate globally.
The Asia-Pacific region was found to have the lowest LGBT mention rate, but moderate support for the community was found among businesses in Japan (24%), Australia (23%) and Thailand (22%). While awareness on LGBTQ+ issues is gaining momentum among businesses in key APAC countries, same-sex marriage is still illegal in most of the APAC region, except in Taiwan and Australia.
In fact, the Indian government is currently contesting legalization of same-sex marriages in the Supreme Court. Whatever the outcome, the country’s LGBTQ+ community will continue to face uncertainty amid various manifestations of official disapproval. The Supreme Court itself has been known to reverse a positive judgment in the past. The Delhi High Court decriminalized gay sex in 2009, only for the Supreme Court to reinstate the ban in 2013. The ban was later lifted in 2018.
Figure 2: Steady rise in organizations specifically addressing LGBT issues in ESG filings
Data as of June 20, 2023.
LGBT mention rate = unique companies with ESG filings with LGBT mention/total unique companies with ESG filings.
Keyword LGBT refers to lesbian, gay, bisexual, transgender, but was used to track other related terms such as LGBTQ and LGBTQI+. The terms LGBTQI+ also includes queer, intersex and further sexual and/or gender identities.
n = Total companies with ESG filings in that period.
Source: S&P Global Market Intelligence.
© 2023 S&P Global.
Nearly one in four (24%) of organizations globally that published ESG filings in 2022 mentioned LGBT at least once in their filings. While this is still a small figure, it has grown steadily from 19% in 2020 to 24% in 2022. Notably, there was a sharp decline in ESG filings in 2022. While fewer filings could be a result of increasing backlash against ESG investments at organizations, according to a report by Axios, or an impact of organizational cost cuts, the decline may also result from a filings delay.
Top mentions were related to awards won, establishment or growth of employee resource groups, and formal commitment to DEI practices.
“Komatsu is improving its programs and systems to establish an in-house consultation desk concerning LGBTQ, recognize same-sex partnerships, and expand the scope of applications concerning welfare benefits, holidays, and leave of absence. It is also working to foster a better understanding of LGBTQ through e-learning designed for managers in order to create workplaces where all employees feel comfortable working.”
Figure 3: Financials, Industrials, and Consumer Discretionary industries lead LGBT mentions
Data as of June 20, 2023.
Keyword LGBT refers to lesbian, gay, bisexual, transgender, but was used to track other related terms such as LGBTQ and LGBTQI+. The terms LGBTQI+ also includes queer, intersex and further sexual and/or gender identities.
n = Total companies with ESG filings in that period.
Period: 2020, 2021, 2022, 2023 (YTD).
Source: S&P Global Market Intelligence
© 2023 S&P Global.
LGBTQ+ keyword mentions vary across a wide range of industries, with Financials, Industrials and Consumer Discretionary firms leading the quantity of mentions across the filings. Banks made mentions in areas of employee resource programs and awards, whereas Specialty Retailers under Consumer Discretionary included brand or campaign messages related to Pride Month and product releases.
We find diverse mentions of LGBTQ+ keywords cover many of the concerns held not only by employees, but also by investors and outside groups.
Employees may not be aware of executive-level discussions of LGBTQ+ issues, such as in the example below. In our view, increased LGBTQ+ mentions to the market can potentially provide comfort to employees; however, employees will also take away negative perceptions when responses during executive forums reject or dismiss concerns over anti-LGBTQ+ policies.
“Similarly, AT&T says that it is ‘committed to supporting organizations and projects that strengthen the LGBT community.’ But AT&T is also associated with legislation in Texas that seeks to classify gender-affirming care as child abuse.
“Other incongruences seem to exist around restrictive voting legislation and in the company's involvement with a lobbying group, slowing US climate legislation. A report from AT&T assessing where its political involvement may be contrary to its public positions is expected to reduce risk to the company's brand, strengthen oversight and reassure investors.”
S&P Global’s 2022 Impact Report
S&P Global strives to create an environment that encourages our colleagues around the world to have a deep sense of belonging, where they feel empowered to contribute their unique insights within our company, with our customers and in our communities. We invest in our company by investing in our people. In 2022, we published our first stand-alone DEI Report, released alongside our Impact Report. After a year of transformation, we continue to drive systemic equity in all our processes, policies and practices. We have:
Figure 4: S&P Global US employee representation as self-identified year over year
Data reflects self-identified ethnicity for U.S. employees as of December 31, 2022.
All of S&P Global excluding CRISIL, CARFAX and Taiwan Ratings Corp. 2022 data is post-merger and includes the IHS Markit employee population.
Source: S&P Global Market Intelligence.
© 2023 S&P Global.
S&P Global Pride PRG survey highlights need to build intersectionality awareness
At S&P Global, to provide additional context and transparency in complement to our data-driven analysis, we have utilized an internal survey of our Pride LGBTQ+ & Friends PRG employees that gives a closer look at attitudes around LGBTQ+ issues in our organization. The LGBTQ+ attitudes we identified internally include concern about data handling and potential retaliation or internal prejudice toward LGBTQ+ individuals who disclose their status to an organization, despite more collective awareness about the population and their distinct needs. The PRG survey showed a significant decrease (15 percentage points) in respondents who believe that collecting data on employees identifying as LGBTQ+ is “very relevant” (31%) and a dramatic increase (17 percentage points) in respondents who are “unsure” (23%) about the relevance of the data collection. Overall, sentiment indicated that the organization should do more with the data to support LGBTQ+ employees, whether through benefits expansion, leadership development or geographic support.
Figure 5 - Employee survey: How relevant do you believe it is to collect data on the percentage of employees identifying as LGBTQI+?
Data as of May 2023.
LGBTQI+ refers to lesbian, gay, bisexual, transgender, queer, intersex and further sexual and/or gender identities.
Based on 104 responses to a survey sent to members of the S&P Global Pride LGBTQ+ & Friends People Resource Group in 2022, and 140 responses in 2023.
Source: S&P Global internal survey of members of the S&P Global Pride LGBTQ+ & Friends People Resource Group.
©2023 S&P Global.
Our internal survey and our broader review of corporate filings lead us to the following considerations regarding LGBTQ+ data collection. On the one hand, firms collecting data on workplace make-up and diversity can be more informed for making strategic decisions, tracking progress and identifying areas of investment. For example, expanding health care benefits to include gender affirmation surgery could depend on identifying a target volume of the employee and dependent population that would utilize the benefit.
Yet we also know there are limitations on what can be asked and collected, especially related to privacy and labor laws globally. When data can be collected, there is no globally consistent categorization for individuals who identify as LGBTQ+. For instance, some companies only collect data on sexual orientation, while other companies also consider non-binary gender identities.
Finally, we must also acknowledge employees are not always comfortable sharing this information. In the changing climate around LGBTQ+ issues, there is fear of discrimination or retaliation if this information is not secured. Post-COVID-19 workplaces have also allowed individuals to establish firmer work-home life boundaries, in some cases creating a negative perception of sharing personal information in a workplace setting. Firms must be able to demonstrate to employees the integrity of the data collection effort, assurances of anonymity for the voluntary disclosure, and clear explanations of how the information is to be collected and applied in the workplace.
Yet increases in virtual aspects of the workplace may be finally impacting the perception of awareness of identities and experiences for the LGBTQ+ community within companies. Many firms are encouraging employees to “bring their whole selves to work,” an effort to respect the intersectionality of gender, race, ethnicity, disability, religion and more. Still, our employee survey has indicated an uptick in “No Awareness,” suggesting a need to do more to build awareness and understanding. Part of the solution may involve ensuring sufficient rapport-building time in virtual meetings, allowing employees sufficient opportunities to share different parts of their identities. If diverse qualities are shared as part of day-to-day operations, managers may find it easier to support diverse candidates’ career development.
Figure 6 - Employee survey: How much awareness do you think there is on the diversity of identities and experiences for the LGBTQI+ community within companies?
Data as of May 2023.
LGBTQI+ refers to lesbian, gay, bisexual, transgender, queer, intersex and further sexual and/or gender identities.
Based on 104 responses to a survey sent to members of the S&P Global Pride LGBTQ+ & Friends People Resource Group in 2022, and 140 responses in 2023.
Source: S&P Global Internal Survey of members of the S&P Global Pride LGBTQ+ & Friends People Resource Group.
©2023 S&P Global.
Pride PRG survey results show employers there’s room for improvement
S&P Global has launched a string of initiatives for the community, including the Pride PRG, and about 87% of respondents to our internal survey have reported at least some focus on LGBTQI+ in the workplace during the past five years. Yet LGBTQ+ and ally employees feel that more needs to be done for this cause in workplaces overall, according to responses to the Pride PRG survey. The survey responses reflect perceptions of S&P Global as a current employer as well as of former employers and of companies in the market. Qualitative responses to this question indicated frustration when a firm does not make public statements or revise customer/vendor policies in the face of anti-LGBTQ+ policies and rhetoric. A lack of firm support from current employers and brands in the market, including 2023 Pride Month backtracking by Budweiser and Target, can exacerbate such frustrations. “Pink washing” or “rainbow washing” are terms often used to label firms that capitalize on the color and joy of Pride month but do not support employees in practice. Perception can deter employees from utilizing LGBTQ+ benefits and programs, despite the reality of their availability.
Figure 7 - Employee survey: Do you think there has been more focus on LGBTQI+ in the workplace during the past five years?
Data as of May 2023.
LGBTQI+ refers to lesbian, gay, bisexual, transgender, queer, intersex and further sexual and/or gender identities.
Based on 104 responses to a survey sent to members of the S&P Global Pride LGBTQ+ & Friends People Resource Group in 2022, and 140 responses in 2023.
Source: S&P Global Internal Survey of members of the S&P Global Pride LGBTQ+ & Friends People Resource Group.
©2023 S&P Global.
Even within the membership of S&P Global’s Pride PRG, a survey respondent indicated, “As a cisgendered heterosexual, I do not have to self-identify my preferences, so why should someone who is a member of the LGBTQ+ community feel compelled?” A statement such as this indicates an opportunity for further education on behalf of S&P Global and all employers. Without clear understanding of why the data is helpful, biased assumptions can persist that each population’s needs are no different, reducing equitable outcomes for the sake of perceived equality.
At the end of the day, firms cannot stop mentioning LGBTQ+ issues, collecting data, or applying expanded programs and policies for the LGBTQ+ community, just because it might be unclear to employees why this is important for inclusive practices. While fear about privacy and security may persist, it is the actions taken by firms that often set the tone for whether LGBTQ+ employees feel seen and included.
“If you want people to feel more safe to disclose their identity, the company should openly and strongly support LGBTQIA+ people in their actions by putting their political and monetary weight behind queer people and people of color. Sign along with petitions against anti-LGBTQIA+ bills, provide gender-affirming care in our healthcare benefits, etc. Put money and intention and action to make yourself a safe place to work.”
– Response from survey of S&P Global Pride LGBTQ+ & Friends People Resource Group
In their open-text comments, respondents to our survey said that support for the LGBTQ+ community needs to come from management and senior leadership to illustrate a company’s strong commitment to DEI. When possible, executives and leaders feeling free to disclose their identification as LGBTQ+ can demonstrate trust in the process and also the existence of leadership positions and opportunities for members of this community. Inclusive language, such as using “they” instead of “he/she” or “partner(s)” instead of “wife/husband” can also play a large role in creating inclusivity.
S&P Global recognizes that we have room to improve the equitability of our approach to sustainability issues across all the geographies where we do business. As we strive to be more inclusive, we can leverage estimates as a proxy of LGBTQ+ employees within regions where we cannot collect that data. By ensuring benefits and policies are evaluated globally, individuals in any given location can know they are supported and accepted within the firm.
Pressure from homophobic groups and anti-LGBTQ+ regulations are affecting the LGBTQ+ community, but many businesses are paving the way for inclusion and acceptance. Seeing support for LGBTQ+ community in countries such as India and Japan, despite challenges in official government recognition, and strong public and legislative support in places like South Africa, Sri Lanka and large parts of the Americas and Western Europe, should give hope to all communities that value diversity.
Firms continuing to express support for the LGBTQ+ community must also acknowledge that many of the greatest advocates are volunteers within their organizations. In addition to elevating employee voices and creating opportunities for visibility, the business should ask itself — should volunteers be leading business transformation at a firm? How great could the impact be if for every public mention, there were actionable changes to benefits, investments and more? Our internal Pride PRG Member survey indicated that employees are hungry for firms to take action, including shaping those highly invested volunteers into the future management and executive leadership who make decisions about benefits, investments and inclusion each day. Look within for the opportunity to transform.
Appendix
Survey questions:
Global English is a style of language meant to be precise and literal, typically used for machine reading and non-native English speakers.