Not only do consumers reflect the diversity of our world, but they care about what businesses are focused on. As a result, we see more industries prioritize DEI, including the UK financial sector. In an effort to drive progress in the UK financial sector, the Financial Conduct Authority (FCA) proposed DEI requirements that would motivate companies to measure, report and make plans to improve their internal representation of marginalized groups.
The requirements would compel companies to:
- Report their average number of employees on an annual basis
- Collect, report, and disclose certain D&I data
- Establish, implement, and maintain a D&I strategy
- Determine and set appropriate diversity targets
- Recognize a lack of D&I as a non-financial risk
The outcomes FCA expects are a healthy culture, reduced groupthink, emergence of new talent and a greater understanding of, and provision for, diverse consumer needs. It’s great to see an industry standards-setter take DEI head on in a time where so many are shying away due to legal fears. For companies in any industry who want to develop a better understanding of their internal DEI needs, check out our checklists, “DEI Data – What to Measure and Why” and “Creating Metrics for Tracking DEI Progress”.
If you aren’t already subscribed to our complimentary ESG blog, sign up here: https://practicalesg.com/subscribe/ for daily updates delivered right to you.
Photo credit: piter2121 – stock.adobe.com
