‘Significant improvement’ needed for UK firms to meet diversity targets
Ethnic minority representation in leadership roles at Britain’s biggest companies increased last year, a government-backed review has found.
But “significant further improvements” are still needed to meet diversity targets by next year.
The latest Parker Review also noted a “disappointing” decline in black representation at board and senior management levels last year.
Despite this, ethnic diversity across FTSE 350 boards and senior leadership improved greatly in the last reporting period.
Review chairman David Tyler said he was “delighted” with firms’ continued engagement and efforts on diversity despite “headwinds” across the Atlantic, despite many US companies rolling back diversity and inclusion targets during Donald Trump’s presidency.
The latest report found that ethnic minorities now hold 20 per cent of FTSE 100 board positions and 16 per cent of board roles in FTSE 250 companies, both representing record levels.
This included 14 ethnic minority chief executives in the FTSE 100; This is another record.
This means that 98 of the FTSE 100 companies now have at least one ethnic minority director on their boards; this figure was 95 in 2024.
The Parker Review was launched in 2015 as part of efforts to increase diversity among senior leadership roles at the UK’s largest companies.
But the latest figures showed that only 42 per cent of the UK’s 50 largest private companies currently meet the 2027 board representation target; This rate was 48 percent compared to the previous year.
The report also noted that “while progress continues, significant further improvements will be required over the next two years for many companies to achieve their self-imposed 2027 targets.”
Mr Tyler said: “We are pleased to see no decline in business engagement on ethnic diversity in the Parker Review, despite headwinds from across the Atlantic.
“The ethnic diversity of the UK workforce has increased significantly over the last 25 years and will continue to do so over the next quarter of a century.
“Companies recognize that they need to respond by recruiting and retaining talent from minority ethnic communities to remain competitive.”
Parker Review Steering Committee Co-Chair Soumen Das said: “As we transition to new leadership and move into the next phase of the Review work, our focus will be to build on this progress, address areas that need further attention and support companies to deliver on their 2027 commitments.”
Business Secretary Peter Kyle said: “I welcome the progress shown in this report – but progress is not the finish line. There is much more to be done to ensure our meeting rooms truly reflect the talent and diversity of modern Britain, and I look forward to seeing the Parker Review continue to deliver fairer representation into the future.”
