The CFA Institute has launched the UK edition of its voluntary diversity, equity and inclusion (DEI) code for the investment profession following rollouts in the US and Canada.
To date, the code has been adopted by 160 companies and is available to investment organisations of any kind and size looking to accelerate change by fostering a commitment to DEI.
Signatory firms will commit to six principles designed to implement greater inclusion of viewpoints, leading to better investment outcomes, working environments and positive change for future generations.
The six principles are: pipeline – extending the diverse talent pipeline; talent acquisition – designing, implementing and maintaining inclusive and equitable hiring and onboarding practises; and promotion and retention – creating and implementing promotion and retention practices in order to reduce barriers to progress.
They also include leadership – promoting and improving DEI outcomes across the investment industry and holding one’s firm responsible for its progress;
influence – promoting and increasing measurable DEI results in the sector; and
measurement – measuring and reporting on progress to drive better DEI results within one’s business.
Signatories to the code will also have to provide a confidential, annual progress to the CFA Institute which in turn will give a progress report once a defined number of signatories has been reached.
“CFA Institute is seeking to build a more representative and resilient industry, and we recognise that far more needs to be done across all aspects of DEI,” said Margaret Franklin, president and CEO of the CFA Institute.
She added, “We started with out DEI Code in the US and Canada, and our UK initiative is in recognition that DEI means different things to different people in different markets. I am proud to note that CFA Institute hereby becomes the first signatory to the UK edition of the DEI Code.”
Sarah Maynard, global senior head of external DEI at the CFA, said the code incorporates UK variations in demographics, culture and societal norms to offer and structure that supports employers, DEI and HR professionals in “building an impactful and measurable DEI strategies”.
Lindsey Stewart, director of investment stewardship research at Morningstar and member of the DEI code working group, added,”In the working group we have given a lot of thought to encouraging signatories to raise their ambitions on DEI, but without introducing a long list of prescriptive requirements.
The code is designed to be scalable across a range of organisation sizes and structures, and most importantly, emphasises how important it is for signatories to demonstrate progress over time. The aim is cultural change, not tick-box compliance.”
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