What is Linkana’s Women-Owned Business Indicator (EPM)?
The Women-Owned Business Indicator (EPM) identifies companies that are highly likely to be owned by women, based on Linkana’s proprietary classification methodology.
Methodology of the EPM Indicator
The EPM methodology is built upon four main criteria:
Ownership
At least 50% of the company’s equity must be held by one or more individuals with names statistically associated with the female gender.
Ownership is determined based on the role of partner/shareholder, not necessarily on being a company administrator.
Control
A woman or group of women must have full authority to make administrative and business decisions independently of any individuals identified with male-gendered names.
Control is determined based on the role of administrator, not necessarily on being a shareholder.
Female Gender Classification
Gender classification is based on the 2010 Brazilian Census data from IBGE, which includes declared names and gender by the population.
We consider names with over 95% association with the female gender.
These names are cross-referenced with individuals listed in the QSA (Shareholders and Administrators Registry) from the company’s CNPJ data.
Exclusion Criteria for the EPM Indicator
A company will be excluded from the EPM classification if:
CNPJ Status ≠ Active
Companies with suspended, inactive, canceled, or disqualified CNPJs are not considered.Legal Nature ≠ Eligible for private ownership
Public agencies, state-owned companies, associations, foundations, and other entities that cannot be privately owned and controlled by individuals are excluded.Shareholders and Administrators ≠ Natural Persons
Companies owned or controlled by legal entities or governmental organizations are not eligible.
What does the Women-Owned Business Indicator (EPM) ensure?
To qualify as an EPM, a company must meet the following:
It does not fall into any of the exclusion scenarios listed above.
All individuals listed in the QSA are natural persons.
There is only one woman or a group of women identified in the QSA who jointly hold roles that grant both ownership and control of the company (e.g., partner, partner-administrator, administrator, etc.).
Notes
If one or more of the criteria above are not met, the EPM indicator is not calculated.
The EPM indicator may change over time as the company’s CNPJ or QSA data is updated.
Why is identifying women-owned businesses important?
Tracking spending with women-owned suppliers is becoming one of the most relevant ESG procurement metrics, driven by increasing pressure from consumers, investors, and governments for more diverse and inclusive supply chains.