The FTSE 100's overall score for diversity, inclusion and commitment sits at 65.7 out of 100, while the S&P 500 scored 58.8 and the Canadian index TSX 60, 55.1, according to Diversio's key metrics for assessing D&I.
The board and executive level's diversity of gender, race, and ethnicity accounted for a quarter of each company's score. Another quarter focused on D&I initiatives and regulations, while anonymous employee feedback was used to determine the other half.
After scraping negative employee reviews of companies online, Diversio found that 79% of dissatisfied employees cited inclusion-related concerns as the cause. Stressful work environments and unfair management were seen as the most prominent barriers to inclusion.
On the plus side, the study revealed that gender diversity at the board level has improved across all indices, with female representation now at 40% for the FTSE 100. At just 26%, gender diversity at the executive level is substantially lower.
The average percentage of board members and executives from diverse racial and ethnic backgrounds in FTSE 100 businesses is 14% and 13%, respectively.
"The quickest way for low-scoring sectors and companies to improve is by surveying employees and implementing fundamental programmes and policies, including a DEI strategy with executive-level accountability and transparent reporting," said Laura McGee, co-founder and CEO of Diversio.
Ann Cairns, global chair of the 30% Club, said: "What the analysis means for companies is that it is critical to track not just diversity but also inclusion. All companies should have fundamental DEI programmes and policies in place and need to listen to employees to identify pain points and create a smooth funnel to leadership."
The best performing sectors were real estate, energy and information technology. Financial, utilities and consumer discretionary were the worst. Pershing Square Holdings, Mondi, and Segro were the top scoring companies across all KPIs.
Read article here ->
