The latest findings from the Parker Review Committee highlight significant strides made in enhancing ethnic diversity on corporate boards across the United Kingdom. However, while progress is evident, challenges persist - particularly amongst a few notable companies.
One of the key findings of the report is that 96 out of the 100 largest UK companies now have at least one ethnic minority director on their board. This signifies significant progress since the inception of the Parker Review in 2017, where only 47 FTSE 100 companies had such representation. Additionally, 56 of these companies have exceeded the target, demonstrating a commitment to fostering diversity at the highest levels of corporate leadership.
However, amidst this progress, there are still lingering challenges. The report notes that four FTSE 100 companies - Diploma, Frasers Group, Howden Joinery Group, and Intermediate Capital Group - have yet to meet the ethnic minority representation target. Despite having until the end of 2021 to fulfil this commitment, these companies have fallen behind, raising concerns about their dedication to diversity and inclusion.
Furthermore, while progress has been made in the FTSE 250, with 70% of companies now having an ethnic minority board member compared to 60% in the previous year, there is still work to be done. The deadline for FTSE 250 companies to appoint at least one ethnic minority director is looming, set for December 2024. The Parker Review committee remains hopeful that momentum will continue to build towards meeting this deadline.
In a notable expansion of its scope, the Parker Review included data on board representation from the 50 largest private companies in the UK for the first time. The findings reveal that less than half of these businesses have an ethnic minority director on their board. While the sample size is limited due to the low response rate, it underscores the importance of extending diversity initiatives beyond the listed sector.
The committee emphasizes that private companies represent a significant portion of the UK economy and stand to benefit from ethnic diversity in their leadership just as much as their listed counterparts. With only 36 companies responding to the survey, there is a call for greater participation in future reports to accurately assess diversity efforts across the private sector.
The Parker Review's voluntary census for 2023, conducted jointly with the Department for Business and Trade and sponsored by EY, provides further insights into the progress of FTSE 100 companies. It indicates that 96 of these companies now have ethnic minority representation on their boards, with a rise in the number of ethnic minority CEOs and an increase in the overall percentage of director positions held by individuals from ethnic minority backgrounds.
Looking ahead, the focus remains on meeting targets and driving continued progress in ethnic diversity on UK boards. Initiatives such as the "One by 2024" target for FTSE 250 boards and the ongoing efforts to increase representation in private companies underscore a commitment to creating inclusive and diverse corporate environments.
