The Pension Regulator (TPR) has published The Equality Diversity and Inclusion (ED&I) action plan to improve diversity and inclusion across trustee boards.
The action plan outlines the measures TPR will take in collaboration with the Diversity and Inclusion Industry Working Group (IWG) to motivate and assist trustees in hiring diverse candidates and fostering an inclusive workplace.
It outlines how TPR will provide practical tools and information on hiring diverse candidates, fostering and maintaining an inclusive culture, engaging employers on diversity, and making sure communications to scheme savers are inclusive. It also outlines how TPR will set trustees’ clear expectations on diversity.
The action plan outlines how TPR will create a system for gathering and using diverse data to gauge success over the long run. The impending single code of practice from TPR will define ED&I expectations. In collaboration with the IWG, it will contribute to the publication of guidance to assist trustees in comprehending and meeting TPR’s expectations.
It will outline how TPR will continue to collaborate with industry stakeholders to concentrate on how employers, chairs, and professional trustees may have an impact on recruiting people of colour and creating an inclusive culture. Through direct engagement with trustees under TPR supervision, the action plan will assist TPR in identifying obstacles to diversity and highlighting best practices.
TPR executive director of regulatory policy analysis and advice David Fairs says: “Our research shows that trustees have a long way to go towards embracing the importance of diversity and inclusion. The status quo is not acceptable.
“Trustee boards that are not diverse risk knowledge gaps, entrenched ideas, biased thinking and poor decision making which puts savers at a disadvantage.
“We want to see trustee boards with a wide range of perspectives, knowledge and skills and where everyone has the opportunity to contribute and challenge from different perspectives.
“We have worked closely with the industry working group to develop this action plan. It sets out clear steps TPR together with the industry will take to help trustees bring about the change that is clearly needed.”
Circl head of growth at leadership training programme provider Meenal Patel says: “Diversity and inclusion within the pension industry is important not just from an employer perspective but also from a wealth equality perspective. We need pension management to represent the diverse communities they have a fiduciary duty towards.
“The Pension Regulator’s statement is a welcome step forward acknowledging their responsibility to diversity within their own organisation and to creating regulations for change at scale. I would like to see more actionable steps to truly build inclusive cultures that allow people from all backgrounds to flourish. We have to move past hiring practices and authentically build workspaces that allow everybody to succeed regardless of their background.”