(February 24, 2012) — Some of the largest asset owners in the United Kingdom have thrown their weight behind a push for better diversity on company boards as the movement prepares practical steps to get more female directors.
The 30% Club today announced that the Local Authority Pension Fund Forum (LAPFF), which represents investors responsible for over £100 billion, had joined its ranks to push for companies in the UK to broaden their director base and propose more women at the executive level.
The group was formed in 2010 to campaign for better representation of women on company boards.
Aberdeen Asset Management, BlackRock, and Hermes Equity Ownership Services also signed up to support the organisation.
At an event this morning in London, Helena Morrissey Chief Executive of Newton Investment Management and Founder of the 30% Club, said: “Board diversity is an important aspect of the wider topic of good corporate governance aimed at improving business decisions, reducing risk, sustaining profits growth and therefore higher long- term returns for shareholders.”
The event marked the anniversary of a report by Lord Davies that recommended that the largest 350 companies listed on the London Stock Exchange should set out their aspirational goals for the percentage of women on their boards in 2013 and 2015 by this month.
Over the past year, the rate of female appointments has more than doubled, with 27% new positions at board level in the largest 250 listed companies being allocated to women, the 30% Club said. FTSE100 companies now have an average 15.2% female representation.
Baroness Hogg, Chairman of the Financial Reporting Council said: “The changes we made to the Code last year reflected the FRC’s view that gender diversity strengthens board effectiveness by reducing the risk of “groupthink”, making fuller use of the talent pool and keeping companies in touch with their customers. We urge companies to demonstrate progress in this important area as quickly as possible.”
The 30% Club members now represent over £1.7 trillion in global assets and is one of a growing number of investor groups applying pressure to companies on their operations and working practices. Over the financial crisis investors were criticised by some for not allowing the banks in which they held shares to act irresponsibly.