129.The Treasury’s Women in Finance Charter’s scope was aimed specifically at diversity with regards to gender, it did not specify other forms of diversity.
130.Jayne-Anne Gadhia, Chief Executive Officer of Virgin Money, said that although the work on diversity has started with gender, “this is definitely not where it ends.” Jon Terry noted that “organisations that have been focusing on diversity and inclusion for much longer […] focus across the diversity agenda, across the dimensions, not just across gender.”
131.New Financial, an independent think tank, was commissioned by the Treasury to review of the progress made by the first cohort of the Women in Finance Charter signatories. New Financial’s review found that “the commitments made by Charter signatories are also having an impact on their approach to non-gender diversity characteristics, particularly ethnicity.”
132.The Committee received evidence from firms on their wider diversity and inclusion initiatives. Zurich stated that it has “four global pillars: Gender; LGBT; Race and Ethnicity; and Generations, [to] ensure that we provide for a diverse employee base.” Unum, an insurance firm, is also “reviewing its hiring practices to ensure managers have a rich pool of candidates from a variety of professional, cultural and ethnic backgrounds.”
133.When asked about the current representation of other forms of diversity in finance, Kate Grussing, Founder and Managing Director of Sapphire Partners, noted that “there are far too few black and minority ethnic (BME) women in positions of leadership.”
Jon Terry, a Partner at PricewaterhouseCoopers, shared this view and stated that:
There are not enough role models for women who are in a socalled minority in more than one dimension. There are nowhere near enough role models for them. That pipeline is becoming healthier, but it is still not healthy enough, and we need those to be addressed across the whole of the industry, not just in a fairly small number of the larger organisations.
134.On diversity within the Treasury, John Glen, Economic Secretary to the Treasury, informed the Committee that:
The diversity delivery committee brings together the executive management board, diversity champions, the co-chairs of the diversity and inclusion board and the director of corporate services to lead and oversee a comprehensive Treasury Diversity and Inclusion action plan. That is looking at initiatives to expand into the workforce. There is also a diversity panel, which reviews annual performance.
135.When asked whether there is an ethnic pay gap within the Treasury, John Glen stated that the data is not available and he was not aware of where the ethnic pay and recruitment gap existed within the Treasury.
136.Whilst the Committee’s inquiry has focused on the representation and progression of women in finance, the issue of representation of other forms of diversity within the financial services sector was raised throughout the inquiry. The Committee recognises that gender diversity is only one element of the diversity agenda and the work carried out to promote this is vital; nevertheless, more work needs to be done for the representation of other forms of diversity within finance.
138.The Committee believes the Treasury should also extend its focus to other forms of diversity in finance. The Treasury should start by understanding its own treatment of employees from diverse backgrounds.
115 New Financial, , (March 2018) p. 3
116 Zurich Insurance ()
117 Unum ()
118 Q101 Plc ()
Published: 13 June 2018