# Britain toughens up diversity targets for UK companies
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-13
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK Companies Urged to Increase Ethnic Diversity in
Meta Description: Find out how top UK companies are being called on to appoint more ethnically diverse board members and senior staff by 2027. Learn more here.
URL: https://financedigest.com/britain-toughens-up-diversity-targets-for-uk-companieshtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-13t093757z2lynxmpej2c0c2rtroptp4climate-change-companies-disclosures-1736814335329-compressed.jpg)

By Huw Jones

LONDON (Reuters) – Britain’s top listed and private companies on Monday were called on to meet broader voluntary targets for appointing ethnically diverse board members and senior staff by 2027.

The Parker Review Committee was set up by government in 2015 and recommended ethnic diversity targets for the boards of Britain’s top listed companies.

It is part of wider efforts to have more [women and people from modest social backgrounds in top](https://www.financedigest.com/top-brands-for-women.html "Top brands for women") corporate and financial roles.

The committee said that in 2022, 96 of the FTSE 100 companies met a target of at least one minority ethnic director on their boards, with 49 having more than one minority ethnic director, effectively meeting a [goal it set](https://www.financedigest.com/britain-sets-5g-goal-says-no-magic-number-of-operators.html "Britain sets 5G goal, says no ‘magic number’ of operators") in 2017.

Ethnic minorities now account for 190 of the 1,064 board [positions at FTSE 100 companies](https://www.financedigest.com/alone-together-how-to-maintain-a-positive-company-culture-while-working-remotely.html "Alone together: How to maintain a positive company culture while working remotely"), 31 as chairs or executive directors.

The next tier down of 250 listed companies are making progress [towards a 2024 deadline](https://www.financedigest.com/twitter-shares-cruise-towards-musks-offer-price-as-deal-deadline-looms.html "Twitter shares cruise towards Musk’s offer price as deal deadline looms") of one minority ethnic director, with 67% meeting the target last year, the committee said.

There’s still more to do however, and the Parker Review’s recommendations clearly set out how companies must improve diversity from [top to bottom in the coming years](https://www.financedigest.com/2017-cfo-outlook-top-priorities-as-new-year-gets-underway.html "2017 CFO Outlook: Top Priorities as New Year Gets Underway"), so they can make the most of untapped talent available and ensure British boardrooms are truly reflective of British society,” business minister Nusrat Ghani said in a statement.

The new targets call on each of the [top 350 listed companies to also set a percentage target for senior management](https://www.financedigest.com/anyone-can-write-assignment-need-people-able-apply-new-skills-workplace-says-top-investment-management-company.html "“Anyone can write an assignment, but we need people to be able to apply their new skills to the workplace,” says top investment management company") positions by December 2027.

In addition, 50 of the largest unlisted companies, such as [law firm](https://www.financedigest.com/international-law-firm-calls-in-viato-connect-uk-and-us-offices.html "INTERNATIONAL LAW FIRM CALLS IN VIATO CONNECT UK AND US OFFICES") Allen & Overy, auditor Deloitte, retailer John Lewis Partnership, Virgin Atlantic and Thames Water have been asked to have at least one ethnic minority director by December 2027.

We have long argued that companies benefit from ensuring that succession planning and management development plans include the development of ethnic minority executives,” [committee chair](https://www.financedigest.com/us-house-committee-chair-concerned-by-tesla-deals-in-china.html "US House committee chair ‘concerned’ by Tesla deals in China") David Tyler said.

(Reporting by Huw Jones; Editing by Robert Birsel)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---