October in the UK marks Black History Month, which provides an ideal opportunity to refocus attention on what more can be done to increase ethnic diversity at all levels within the UK’s investment management industry, writes the Association of International Life Offices (Ailo).
It’s timely as more and more evidence emerges of a lack of Bame representation. One example is the ‘Ethnicity in Investment Management’ report published in March 2021 by The Investment Association (in collaboration with Eversheds Sutherland) which highlighted the need to increase ethnic diversity.
The report stated that in London, where much of the investment management industry is based, 18.5% of the population identify as Asian and 13.3% as black, but only 10% of individuals working within the industry identify as Asian and only 1% identify as black.
It also quoted analysis published by Green Park, an executive recruitment consultancy chaired by Trevor Phillips, former chairman of the Equality and Human Rights Commission, which revealed that there were no black individuals holding the role of chair, chief executive or finance director at FTSE 100 companies, while only 10 out of 297 employees occupying these roles have ethnic minority backgrounds.
The Investment Association study concluded that “these are damning statistics and illustrate the work that needs to be done to address the blocks in the system that prevent ethnic minorities from progressing through the pipeline”.
Support diversity via ongoing strategy
While it’s true that progress is being made to increase ethnic diversity in the investments sector, there’s clearly much more work to be done to encourage and enable firms to turn good intentions into meaningful actions.
In her foreword, report co-author Pauline Hawkes-Bunyan, a director of The Investment Association, said it’s crucial to keep D&I at the top of the agenda to secure the sustainability and long-term impact of firms’ interventions when planning for the future.
Ailo is playing its part in promoting D&I, and it is encouraging member companies to show their support for Black History Month as part of an ongoing diversity and inclusion strategy. Ailo aims to position the association at the forefront of positive change by encouraging the life industry to set an example for other sectors to follow.
“In Ailo, we bear a responsibility to lead on best international practice on issues of diversity, equity and inclusion,” said John McNamara, chair of Ailo’s D&I committee.
“That’s not because it makes good business sense, even though we know there is a direct and positive correlation between diversity and company financial performance, but principally because Ailo strongly believes that treating people equally is the right thing to do from a moral perspective and will continue to reinforce these principles across our member geographies.”
Initiatives
The theme of Black History Month this year is ‘Proud To Be’ with the focus being on the pride people have in their heritage and culture – and the initiative is encouraging them to express that pride in their own way, and in their own words.
As a result, Ailo members are organising their own activities – one example being Canada Life International which is hosting two virtual events to help employees understand the underlying issues behind the lack of ethnic diversity in the industry.
Both provide opportunities to listen and learn from high-profile figures who will talk about their own experiences of discrimination, and the significant contributions they have made to anti-racism campaigns.
As part of its diversity and inclusion initiative this year, Ailo has also shown its support for International Women’s Day and Pride Month.
Looking ahead, as an organisation that has member companies based in several leading financial centres – including the EU, UK Crown Dependencies and the British Overseas Territories of Bermuda and the Cayman Islands – Ailo will continue to use its strong position to show leadership on diversity, inclusion and equality.
This article was written for International Adviser by the Association of International Life Offices, to mark Black History Month in the UK.
