More Action Needed by FTSE Firms on Diversity Targets

Five months ahead of new diversity and inclusion rules, ISS ESG – the responsible investment arm of Institutional Shareholder Services (ISS) – has found 18% of FTSE AllShare constituents are falling short across all fronts. The Financial Conduct Authority’s (FCA) new rules, which will come into effect from 1 April 2023, require at least 40% of the board to be women, at least one senior board position (chair, CEO, CFO, or senior independent director) is held by a woman, and at least one board member is from a minority ethnic background. ISS ESG has found that four in ten of FTSE AllShare constituents had met the target for women on the board, 53% have at least one senior board position held by a woman and 64% have at least one minority director. Guillaume Tassin, ISS ESG’s Head of Data Solutions, said: “There is noticeable movement across all indicators. However, much remains to be done for most companies to meet FCA targets by 2023 and we expect to see a marked uptick in investors seeking to engage with portfolio companies on meeting those goals.” 

To Top
Newsletter SignupReceive all the latest stories from the ESG Investor editorial team

Subscribe to our free weekly newsletter below and never miss a story.