ShareAction pushes FTSE 100 to enhance ethnicity pay gap reporting
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Responsible investment organization ShareAction has launched a campaign aimed at raising the standards of ethnicity pay gap reporting among the U.K. financial services sector.
The campaign, launched on Tuesday, calls on FTSE 100 companies to improve the standard of their ethnicity pay gap disclosures by undertaking analysis of any observed disparities, to identify their causes, and propose solutions to address them.
According to ShareAction, no FTSE 100 companies in the financial services sector currently report on ethnicity pay gap data, despite recommendations from the U.K. government’s Office for National Statistics.
Runnymede Trust’s latest report reveals that, in the U.K., Black and Minority Ethnic (BAME) households have up to 10 times less wealth than White British households.
In a statement alongside the announcement, ShareAction CEO Catherine Howarth said, “Ethnicity pay gap disclosures are a critical step towards tackling inequality in the workplace,” adding that “solutions are available so long as employers are committed to action and change.”
Earlier this year, ShareAction asked 16 issuers about ethnicity pay gap reporting. All companies “welcomed the questions,” while abrdn, Hiscox, and Schroders committed to publishing ethnicity data once their disclosure rate has increased. All but one company has agreed to a follow-up meeting, the responsible investment organization revealed.
ShareAction has said that while this campaign will start by targeting the financial sector, the plan is to expand to other sectors as time progresses.