The new rules provide issuers with flexibility to report on representation of women by reference to either gender identity or sex.
New diversity reporting requirements
The updated Listing Rules require in-scope issuers (broadly, premium or standard listed companies, excluding OEICs and “shell companies”) to incorporate into their annual reports certain disclosures on the diversity of their boards and executive management, including:
- A “comply or explain” statement setting out whether they have met the following diversity targets:
- At least 40% of the board are women
- At least one of the senior board positions is held by a woman (Chair, CEO, Senior Independent Director, or CFO)
- At least one member of the board is from a minority ethnic background (defined by reference to categories recommended by the Office for National Statistics (ONS), excluding those the ONS lists as coming from a White ethnic background)
- Numerical data on the sex or gender identity and ethnic diversity of their board, senior board positions, and executive management in a standardised table (with issuers able to add to the fields “men” and “women” to include “non-binary” or other gender identities)