Bank of England Makes Slow Progress on Management Diversity Aims
TheBank of England is making slow progress in its attempts to improve ethnic and gender diversity among its senior management, risking missing its own goal for female representation at the end of this year.
The central bank has managed to increase the proportion of Black, Asian and Minority Ethnic staff occupying senior positions to 7% this year, according to data published in its annual report Thursday. That’s a single percentage point gain in four years and a long way behind its target of 13% by the end of 2022.
Despite former Governor Mark Carney putting diversity at the forefront of his agenda at the bank, the BOE has struggled to reach its self-imposed quotas. Women now hold 32% of senior management roles, falling short of the year-end goal of 35%. TheEuropean Central Bank achieved a similar target for top female bosses at the end of last year, though it fell short for all managers.
The BOE also publishedclimate-related disclosures Thursday, which found it is exceeding targets on emissions from activities including the production of bank notes, the carbon footprint of its buildings, and business travel this year. The institution has a new goal for 2030, and aims to reduce its emissions by more than 60% compared to 2016 levels.
The central bank evaluated the financial risks from climate change in its asset portfolio, finding that it is aligned with that of the U.K., which has a low-carbon footprint compared with other developed nations. Still, it said the country needs to make changes quickly to meet climate targets, and it’s exposed to some transition risks such as stranded oil and gas assets through what’s left of its North Sea reserves.
It found its corporate asset holdings — which make up a smaller part of its portfolio — are consistent with a temperature increase of 3.5 degrees Celsius above pre-industrial levels by 2100. That reflects that “a whole economy transition will be needed if internationally agreed climate goals are to be met,” the report said.
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