Read: Targets hit the mark for boardroom representation

At a time when the UK is having to take a long hard look at how to get its economy back on track, and how it does business, one of the key factors will be its workforce. Does it include all the talent that is available in every part of the country? Does it reflect the communities it is operating in?

A workforce which ignores or dismisses talent because of its background, or lack of connections, won’t achieve its potential. That will be bad for the economy which will fail to thrive at just the time it most needs to succeed, with a cost-of-living crisis, the war in Ukraine and global insecurity all continuing to undermine stability and prosperity. It will also be bad for individuals who will miss out on opportunities that can change their lives for the better, alongside the financial, social and health benefits they bring.

So it makes sense to ensure that half the population – women – are properly represented at every level of the workforce. In particular, there is a need to improve their representation at the very top levels. That means that other women can see people like them running organisations, and be inspired by them. In turn, better diversity in business leads to more creative thinking and innovative solutions, and research shows that drives better business outcomes.

The FTSE Women Leaders Review was set up in 2022 as an independent, voluntary and business-led initiative, supported by government, to increase female representation on FTSE 350 boards. It includes targets for FTSE 350 Leadership teams to be a minimum of 40% women by the end of 2025 and FTSE companies to have at least one woman as Chair or Senior Independent Director on the Board, and/or one woman in the Chief Executive or Finance Director role in the company, by the end of 2025.

The good news is that we’re three years ahead of target, with the Review reporting in February this year that the 40% target for women on the FTSE 350 boards had already been met in 2022. Business was also on track to meet the 40% Women in Leadership teams target by the end of 2025, with the UK’s 50 largest private companies all on course. The UK is leading the way globally with the latest data showing that 40.2% of FTSE 350 Board positions are now held by women, a really positive step forward.

Pennon, which provides drinking water and wastewater services to 3.5 million customers across the Great South West, was recognised as a leader in female board representation for the second year running with the best performance in the Utilities sector. 55.6% of its board members are women and it is one of the very few FTSE 250 companies which has both a female CEO, Susan Davy, and Chair, Gill Rider. For purpose-led businesses, driving a more effective performance on these indicators is key to levelling up the workforce. Pennon also reports annually on its gender pay, under the guidance of Chief People Officer, Adele Barker. In a week which saw the anniversary of the 1970 Equal Pay Act giving women the right to equal pay in the workplace, the latest national figures show that the gender pay gap for women in their fifties is not set to close until 2025. There is clearly more work to be done, but reporting is essential to tracking and evaluating progress, and the best companies are leading the way.  

It is also important that businesses drive progress from the bottom up. The utilities industry is a predominantly male one, so Pennon’s focus has been on the targeted recruitment of graduates and apprentices which has led to a high female recruitment rate. It engages with schools on STEM-focused initiatives to encourage more girls to take STEM subjects at school and university and to raise awareness of the career opportunities that can open up. It also operates female mentorship programmes for middle and senior managers to help develop a broader pipeline of talent at all levels of the business. It is also important that support and new ways of working are available to those with caring responsibilities.

It is crucial that businesses across the country, especially those in disadvantaged areas, continue to strive to meet these targets for increased representation at senior levels but also to continue to set themselves a range of targets to attract and retain a more representative workforce at every level.  

Rt Hon Justine Greening, Chair - Purpose Coalition & Former Minister for Women and Equalities