The Commission’s Strategy
The EU Gender Equality Strategy 2020-2025 presents policy objectives and actions to make significant progress by 2025 towards a gender-equal Europe. The goal is a Union where women and men, girls and boys, in all their diversity, are free to pursue their chosen path in life, have equal opportunities to thrive, and can equally participate in and lead our European society. One of its key objectives is achieving gender balance in decision-making.
The European Commission continues to encourage and support EU Member States and stakeholders in developing and implementing effective strategies to achieve balanced participation of women and men in decision-making. These actions include:
- raising awareness.
- political dialogue.
- mutual learning and exchange of good practices including through the Mutual Learning Programme in Gender Equality and the Platform of Diversity Charters.
- funding projects to develop and support strategies and tools for positive change.
- disseminate data and analysis of trends and good practice on women and men in decision-making positions in cooperation with the European Institute for Gender Equality.
As an employer, the Commission is committed to lead by example, with the first female Commission President selected in 2019, and the first gender-balanced College of Commissioners during this time. In 2023 the Commission also achieved gender balance at all levels of management. Supportive measures in place include quantitative targets for female appointments, leadership development programmes, and a renewed anti-harassment policy. The Commission also aims to have a balanced share of female managers in the executive agencies by the end of 2024.
Legislation – Directive on gender balance in company boards
On 27 December 2022, new Directive that seeks to improve the gender balance in corporate decision-making positions in the EU largest listed companies came into force.
The directive is aimed to ensure that gender balance in corporate boards of listed companies is improved across the EU, while allowing for flexibility for Member States that have adopted equally effective measures. This flexibility allows for the suspension of the procedural requirements set out in the Directive.
Key provisions of the directive
At the heart of the new directive lies a transparent selection process of the board members based on clear criteria and a comparison of the candidates' qualifications. Large listed EU companies that do not meet the target of 40 % among non-executive board members or 33% among all directors of the under-represented sex by 30 June 2026 have to ensure fair and transparent selection procedures for the selection of candidates for board positions. Such companies will be required to make appointments on the basis of a comparative analysis of the qualification of candidates by applying clear, gender-neutral and unambiguous criteria and to ensure that applicants are assessed objectively based on their individual merits, irrespective of gender.
This approach respects all candidates’ qualifications and merit as the decisive criteria. The criteria for board positions are to be established by the companies themselves. Suitability, competence and professional performance, not gender, remains the key factors for the selection process. Only when two candidates are equally qualified should the choice be made in favour of the underrepresented sex.
Large-listed EU companies also have to undertake individual commitments to reach gender balance among their executive board members.
Companies that fail to meet the objective of the directive must report the reasons and the measures they are taking to address this shortcoming.
Member States foresee penalties for companies that fail to comply with selection and reporting obligations. Such penalties must be effective, proportionate and dissuasive. They could include fines and nullity or annulment of the contested director’s appointment. Member States are required to publish information on companies that are reaching targets, which would serve as peer-pressure to complement enforcement.
The Directive will ensure that gender balance in corporate boards of listed companies is improved across the EU, while allowing for flexibility for Member States that have adopted equally effective measures. It recognises that some Member States have chosen other promising options for improving gender balance on company boards and allows those Member States to pursue their respective approaches instead of the procedural requirements of the directive provided that these deliver concrete results.
The directive is meant to be temporary and is set to expire on 31 December 2038.
Member States have to transpose the Directive into national law within two years – by 28 December 2024.
Monitoring
The Commission monitors the situation on women and men in decision-making positions through its annual report on equality between women and men.
Documents