Diversity disclosure: Turning words into progress

Following statements issued by a number of asset managers, Aviva Investors has gotten in on the act by writing to companies to warn them of the potential consequences should they fail to act on ethnic diversity. 

Aviva Investors' Versey highlighted in the letter that balanced board representation, including from a gender, ethnicity and social background perspective, was a "critical business issue, one that is essential for ensuring a deep understanding of key stakeholders and securing the best available talent". 

But it's not just the stats Versey is after. Where boards lack diversity, he and his business want to see a "credible diversity strategy" to address the issue otherwise companies will face the full force of Aviva Investors' voting power. 

Indeed beyond just reporting on board diversity, the Aviva Investor voting policy sets out expectations of companies that they provide ethnic diversity data "at every level of the business". 

The resurgence of the Black Lives Matter movement as a result of the death of George Floyd in 2020 led to a lot of companies making big public statements on their plans and positions as regards race and diversity. These statements must now be backed up with action and Versey, Aviva Investors and the wider asset management industry can play a big role in holding companies to account.