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State Street Global Advisors (SSGA) has written to company boards outlining its expectations on racial diversity. The letter, signed by Chief Investment Officer Richard Lacaille, calls for more disclosure starting in 2021.

From next year, State Street will expect companies to disclose information on their racial diversity goals and strategy, and on related risks to their business, to shareholders. The disclosure should include information on the metrics used to measure progress, both in terms of workforce and board-level diversity, and how the board exercises oversight.

“As long-term investors, we are convinced that the lack of racial and ethnic diversity and inclusion poses risks to companies that senior managements and boards should understand and manage,” the letter reads. “Research demonstrates the tendency for groups composed of people from similar backgrounds to refrain from challenging prevailing views, as well as the positive impacts that diverse groups can have on improved decision making, risk oversight and innovation.”