The Parker Review has published its 2022 Update Report on the progress made against the targets for ethnic diversity on UK boards. The 2022 Update marks the deadline for FTSE 100 companies to meet the target set by the Parker Review of having at least one director from an ethnic minority group by the end of 2021.
The Government commissioned the Parker Review in 2015, with a view to increasing the ethnic and cultural diversity on UK company boards. Alongside the target set for FTSE 100 companies, the Review recommended that each FTSE 250 board should meet the same target by 2024 and that companies should develop internal mechanisms to promote diversity (see our corporate update 2017/21).
The key findings of the 2022 Update are that:
- 89% of FTSE 100 companies had met the target by the end of 2021, with a further five appointments announced ahead of the publication of the 2022 Update and three more companies actively engaged in the recruitment of a director from a minority ethnic group;
- with another three years to go for FTSE 250 companies to meet the target, 55% of the FTSE 250 companies which responded to the voluntary census already have at least one director from a minority ethnic group; and
- 16% of all FTSE 100 board positions and 10% of all FTSE 250 board positions are currently held by minority ethnic directors.
Whilst the 2022 Update notes the considerable improvements that have been made in the last five years, it cautions against complacency and the adoption of a "one and done" mentality. The 2022 Update observes that the vast majority of minority ethnic directors hold non-executive positions and so, going forward, the Parker Review recommends that there should be continued focus on the appointment of directors from minority ethnic backgrounds to the most influential board positions.
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