Is gender parity achievable? Insights from the latest FTSE Women Leaders Review

The FTSE Women Leaders Review, a voluntary, independent and business-led initiative supported by the Government, released its latest report, Achieving Gender Balance, in February.

The aim of the initiative is to expand gender balance at the top of British businesses beyond the FTSE 350 including the UK’s top 50 private companies. Each year the report publishes progress against its four recommendations, outlined below:

• By the end of 2025, women should hold 40% of the board and leadership roles within the FTSE 350.
• By the end of 2025, companies on the FTSE 350 should have at least one woman appointed as chair, senior independent director (SID), CEO or CFO.
• Stakeholders should set best-practice guidance or have other mechanisms in place to encourage any FTSE 350 company that has not met the previous 33% targets to do so.
• The top 50 private companies in the UK are encouraged to comply with the recommendations.

Key findings

Let’s take a closer look at how companies are progressing

• 42% of FTSE 350 board positions are now held by women, a historic milestone which surpasses the 40% by the end of 2025.
• The representation of women in leadership roles within the FTSE 100 and FTSE 250 stands at 35% and almost 34% respectively. However, significant improvements in appointment rates are required to reach the 2025 target.
• Just over two-thirds of FTSE 350 companies have met the recommendation that at least one of the four key roles are held by a woman. The proportion of positions held by SIDs rose to near parity at 47%, although all other positions experienced a net decrease.
• Among the top 50 private companies, the proportion of women in leadership roles rose to 36%, while the percentage of women on the board remains flat at 31%.

Overall, the review reported another year of good progress while emphasising that much more remains to be done.

Our recommendations

So, what can you do to ensure that your diversity strategy is not lost in translation? Drawing on our expertise in corporate communications, here is how companies can demonstrate their commitment to their diversity strategies.

• Ensure you have a strong tone from the top. This can be achieved by including narratives focused on diversity in leadership statements. For example, Balfour Beatty’s chair introduction on page 5 of the annual report highlights its diversity program, how the board engaged during the year and progress on its diversity hires.
• Report on the progress of timebound targets, detailing both challenges and opportunities encountered. For example, Balfour Beatty on page 75 of the annual report includes an update on how it is progressing on its diversity targets and provides clear bar charts with historical performance.
• Establish diversity-related KPIs and link them to remuneration. For example, Lloyds Banking on page 110 of the annual report includes diversity within its balanced scorecard. Acknowledge and address challenges in data collection, especially for multinational corporations operating under diverse legal frameworks.
• Report and explain what actions will be taken in regard to gender pay gaps. For example, Britvic integrates an inclusion pay gap report within its annual report and provides a clear list of actions it has taken during the year on page 43.
• Explain how employee engagement contributes to improved decision making and outcomes regarding diversity. For example, Flutter’s stakeholder engagement disclosures on pages 12 to 13 of the annual report includes diversity-related topics and highlights winning awards such as the “diversity and inclusion model for the year” which enhances the credibility of its efforts.
• Ensure that policies are clearly defined and that efforts to understand and eliminate bias from the selection process for board and leadership appointments are effectively communicated. For example, in Mondi’s annual report, page 107 of the nomination committee report directs readers to its website to read its full diversity and inclusion policy.
• Demonstrate how leaders undergo continuous training and development to adapt to an evolving business landscape and how new skills and attributes are acquired.

It is clear progress has been made and gender balance at the top of British business is within reach, yet more remains to be done. As the 2025 targets deadline is approaching companies will need to increase efforts to achieve the collective goal.

To find out more or learn how we can support you in improving your diversity reporting and employee experience, please get in touch at hello@design-portfolio.co.uk.