Financial services network reboot., which has partnered with ESG Clarity to spotlight the journeys of successful ethnic minority professionals who have risen to senior positions in the corporate world, has launched a racial equality index scoring companies on representation, culture and action.
Developed with research house Coleman Parkes, the reboot. FS Race to Equality Index scores asset management, hedge funds, insurance, investment banking, private markets and wealth management out of 100 on their all-level representation of ethnic minorities, the treatment of ethnic minority employees, and whether diversity and inclusion actions are taken at the organisation.
Doug Sharp, EMEA CEO at Invesco and reboot. ambassador, said: “We’ve seen an increase in corporate commitments to diversity and inclusion over the past two years, and tools like the reboot. FS Race to Equality Index help hold us accountable for meeting those commitments. Increasing representation at senior levels and creating lasting culture change doesn’t happen overnight. We need to see genuine, year over year commitment if we’re going to create meaningful change.”
The purpose of the index is to measure performance across ethnic diversity metrics, which can be used as a tool, as well as to hold the industry as a whole to account. Sachin Bhatia, Head of UK Core Institutional & Consultants at Invesco and reboot. ambassador, said: “The Financial Services Race to Equality Index Scorecard is an innovative tool that will allow us to track and measure the industry’s progress on D&I. Quantifiable data is key.”
Lindsey Stewart, head of stakeholder engagement at the Financial Reporting Council and reboot. ambassador called the index a ‘call to action’, and reboot. has also provided a five-point plans for the industry to improve its scores. The first is to listen to your employees, as it says only a quarter of firms consult with ethnic minority employees on how to tackle diversity and inclusion issues.
The second is update and evolve training programmes, as diversity and inclusion training remains low. The third is to develop role models by setting up senior business sponsorship schemes. The fourth is to lead from the top, and the last is to educate and train HR and recruitment teams.
Maddi Forrester, head of global consultant relations at MFS Investment Management and a member of the MFS Diversity Council, said: “The FS Race to Equality Index serves as a tangible benchmark for the fund management industry. Thanks to which we can now better understand where we are starting from and strive to create a more diverse and inclusive workplace. A diverse mix of voices ultimately leads to better decisions and outcomes, which is key to the growth of every company. We are at a watershed moment that I believe will lead to meaningful progress.”