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Parker Review 2023 Report Launch
Parker Review 2023: Improving the ethnic diversity of UK businesses
In this webcast, panellists explore the findings of the Parker Review 2023 Report. Watch on demand now.
Setting new targets
Senior Management
The vast majority of FTSE 100 companies - 82 of them - provided data on the number of people in their senior management group and the proportion of which identified as having an ethnic minority background. On average, 13% of senior management positions of these companies are occupied by people with ethnic minority backgrounds.
As many as 48 of these companies also reported that they had set targets for the ethnic minority representation within their senior management by December 2027. The average target is 17%, representing a 4 percentage point rise from current levels. The range of targets set by companies ranged from 5% to 45% of senior management teams, influenced by the wide variation in the share of ethnic minorities in the wider population amongst different regions of the UK and internationally.
Private Companies
Of the 50 private companies invited to participate in the Review, 36 provided data about their board composition. Of the companies that responded, 22 report having at least one ethnic minority director on their board. This means that of the companies that reported their data, 61% already meet the target that they were asked to meet by December 2027.
The Review hopes to receive a greater number of responses from the selected 50 private companies in future years and trusts that these companies will also engage with setting and reporting on targets for the proportion of ethnic minorities in their senior management by 2027.
David Tyler, Chair of the Parker Review Committee, commented:
“We’ve seen continued good progress this year on ethnic diversity across FTSE 350 boards. For the first time, we have authoritative data too on ethnic minority representation in senior management, revealing that 13% of FTSE 100 and 12% of FTSE 250 senior management teams are from ethnic minority backgrounds.
“This year, we have also seen a big jump - from 7 to 12 – in the number of ethnic minority CEOs in the FTSE 100.
“The FTSE 250’s progress towards its December 2024 deadline, for at least one ethnic minority director on each board, is encouraging, reaching 79% of those reporting. With the time remaining, we urge those FTSE 250 companies without an ethnic minority director to do what they reasonably can to reach the target.”
Industry Minister Nusrat Ghani commented:
“This report charts the UK’s continued journey toward securing the best of the best talent – irrespective of ethnicity – into key roles at the very top of British business.
“I’m happy that since the launch last year, the Parker Review has worked to ensure we have increasingly inclusive business cultures, but there is still more to be done to guarantee British boardrooms and senior management teams are truly reflective of British society.”
Hywel Ball, EY UK Chair, added:
“At a time when business leaders are having to grapple with the realities of a challenging macroeconomic environment, coupled with geopolitical fragility and political uncertainty, it’s important not to lose sight of longer-term priorities. While this year’s Parker Review shows that progress is being made to increase the representation of ethnic minority talent, there’s still more to do.
Business leaders need to retain an enduring, stewardship-like approach to progressing these goals. As the UK seeks to transition into a high-growth economy, developing and supporting diverse talent must remain a business and policy priority.
At EY we have a target to increase the proportion of ethnic minority Partners in our UK business to 20% by 2025, of which 15% are to be Black. As of July 2023, 17% of our Partners were from an ethnic minority background, of which 8.5% identify as Black or mixed Black Heritage. Whilst we are not yet where we want to be, we are steadfast in our commitment and taking action across all parts of our business to continue our progress.
The Parker Review, and the targets that it sets, provide an important benchmark and objective criteria to increase the representation of ethnic minorities across UK business. Crucially, it ensures that efforts to diversify UK business are led from the top down and that, as leaders, we continue to be held accountable - regardless of the macroeconomic climate.”