Board Inclusion Policy

Board Inclusion Policy

The Board Inclusion Policy (the “Policy”) sets out the Board of Scottish Widows Group’s (the “Board”) approach to diversity and inclusion for the Board and provides a high-level indication of the Board’s approach to this in senior management roles, which is governed in greater detail through Lloyds Banking Group policies. 

The Board places great emphasis on ensuring that its membership reflects diversity in its broadest sense. Consideration is given to the combination of diversity demographics, skills, experience, educational, socio-economic and professional background, and other relevant personal attributes on the Board to provide the range of perspectives, insights and challenge needed to support good decision making. 

New appointments and succession plans are made on merit, taking account of the specific skills and experience, independence and knowledge needed to ensure a rounded Board and the diverse benefits each candidate can bring to the overall Board composition. They should promote diversity, inclusion and equal opportunity. 

Objectives for achieving Board diversity are reviewed on a regular basis, ensuring an inclusive approach. On gender balance, the Board aspires to maintain 45-55% female representation on the Board, higher than the FTSE Women Leaders recommendation of 40%, while recognising the limited numbers involved. On ethnicity, the Board is committed to meeting the Parker Review recommendation of having at least one Black, Asian or Minority Ethnic Board member, which the Board currently exceed. Currently, the Policy is not applied to the Board committees individually, although the diversity in the Board is expected to be reflected across the committees. 

The Board places high emphasis on not only its own diversity composition but also on overseeing alignment with Lloyds Banking Group’s wider inclusion approach and ambitions, and expects to be kept updated on progress. Any material changes to the Lloyds Banking Group approach to Inclusion are approved by the Lloyds Banking Group Executive Committee, noted by the Lloyds Banking Group Responsible Business Committee and approved at the Lloyds Banking Group Board level. This includes material changes in inclusion ambitions and supporting plans.