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Equality, diversity and inclusion
The Board of the Legal & General Mastertrust has implemented its first policy on equality, diversity and inclusion – otherwise known as EDI. Kim Brown, Head of the Mastertrust and IGC, explains the significance of the measure and offers some suggestions for those wanting to establish their own policy.
The Mastertrust Trustees oversee the pension savings of more than 1.8 million members, so it’s vital that the scheme is well run, offers value for money and that communications and investment choices fully cover the diverse needs and requirements of their members.
The Trustees believe that having a diverse trustee board, board support functions and advisers are fundamental to helping them achieve this by supporting well-rounded and more effective decisions.
The Pensions Regulator (TPR) completed its first survey into Trustee Diversity and Inclusion in 2023. It found that only 17% of schemes formally recorded trustee diversity data.
The Mastertrust Trustees are proud to be one of the few schemes contributing to this meaningful data collection by completing their own EDI assessment in 2023. Their survey results compared positively to the findings published by TPR in relation to a typical trustee board.
It demonstrated 50:50 gender balance and diversity across each area assessed, including background and experience, age, and ethnicity. The initial results will be used to form a benchmark for future assessments.
The Trustees value the board’s diversity and recognise the regular review of their policy will further strengthen focus on this area. Creating an inclusive culture and ensuring all are effectively involved, valued, and supported reduces the risk of groupthink by providing different viewpoints, ideas and challenge that can make sure any business runs well.
Five things to consider for a diverse and inclusive board
Make sure that the way you communicate with your members and the benefits you offer recognise, respect, and take account of their differing needs.
The Trustees’ Member Experience Committee oversees the inclusivity of member communications, validating Legal & General’s approach, including its progress towards external accreditations. Legal & General works with specialists in several fields to identify the best way to make communications accessible.
This includes gender neutral language and accessibility requirements for neuro-diverse individuals or those with hearing or sight impairments. The Trustees also oversee the investment range and consider the inclusivity of investment choice and the companies that the scheme invests in, meaning that EDI is a focus throughout the entire scheme proposition.
Master trusts of scale will have a diverse membership and it's important that the board and those that provide support or advice are representative of that membership.
All appointments should aim to be based on the impartial evaluation of knowledge, skills, and experience. Check the latest regulatory and best practice guidelines.
The board should also support its own experience with feedback from employers and scheme members.
The Trustees’ Mastertrust Employer Group (MEG) is a well-established forum which gives participating employers an update on Mastertrust developments, forthcoming regulatory changes, investment matters, administration, and member engagement. Importantly, it gives the Trustees an opportunity to listen to and act on feedback from participant employers.
The Chair may consider putting goals in place to ensure representation of age, gender and minority ethnicities across the board and oversight of the organisations they work with.
It’s the role of the Chair of the Trustees to embed inclusivity and ensure all voices are heard. This could involve:
- Building behaviours that are respectful of differences – unsupportive behaviour should not be tolerated
- Being fair and transparent
- Creating an inclusive environment where everyone can feel psychologically safe to contribute their views
TPR’s guidance sets out the role of the Chair in promoting EDI.
There are many charities and organisations that can offer help and advice, whether that’s running an in-house training and awareness course, promoting inclusive events and activities or giving practical tips on how to improve your policies and communications.
The Mastertrust Trustees’ EDI policy is their response to TPR's EDI guidance and may provide a framework if you are considering your own policy. Understanding the profile and needs of your own membership and regularly monitoring this is key to the way you choose to proceed with your policy.