international employment law firm alliance L&E Global
United Kingdom

UK: Equality diversity and inclusion: Racial diversity

Authors: Stephen Miller & Corinna Harris

The Parker Review was set up in 2015 to encourage UK businesses to take on individuals from ethnic minorities to enhance opportunities for ethnic minority groups as well as the performance of UK businesses.

The  Parker Review 2023: Improving the Ethnic Diversity of UK Business includes the results of its latest survey on the ethnic diversity of companies’ boards. The report says that, as at 31 December 2022:

  • 96 FTSE 100 companies met the Parker Review target, with at least one minority ethnic director on their boards, and 49 have exceeded this target by having 2 or more ethnic minority directors
  • 18% of all FTSE 100 director positions are held by directors from a minority ethnic group
  • 149 FTSE 250 companies have appointed at least one minority ethnic director by 2022
  • FTSE 350 companies will be asked to set a percentage target by December 2023, for senior management positions that will be held by ethnic minority executives by December 2027
  • 50 of the UK’s largest private companies will be asked to provide ethnic diversity data from December 2023. These companies will be set the target of having at least one ethnic minority director on the main board by December 2027. Each company must also set a target for the percentage of ethnic minority executives within its senior management team

Key Action Points for Human Resources and In-house Counsel

The Parker Review notes that companies should seek to encourage as many of their employees as possible to self-declare their ethnicity to enable data to drive decision-making.