The Board Diversity Policy (the “Policy”) sets out the Board of Scottish Widows Group’s (the “Board”) approach to diversity. It also supports the Lloyds Banking Group’s (“LBG”) high level approach to diversity in senior management roles which is governed in greater detail through LBG policies.
The Board places great emphasis on ensuring that its membership reflects diversity in its broadest sense. Consideration is given to the combination of demographics, skills, experience, race, age, gender, educational and professional background and other relevant personal attributes on the Board to provide the range of perspectives, insights and challenge needed for good decision making.
New appointments are made on merit, taking account of the specific skills and experience, independence and knowledge needed to ensure a rounded Board and the diversity benefits each candidate can bring to the overall Board composition.
Objectives for achieving Board diversity may be set on a regular basis. On gender diversity the Board has a specific objective to maintain membership of at least 30% of female Board members. Female directors account for 42% of the Board at the time of approving the Policy (18 June 2020), and in line with the Policy. The Board will also aim to meet the objectives of the Parker review for at least one Black, Asian and Minority Ethnic (“B.A.M.E”) Board member by, or as soon as possible after, the target date of 2021.
The Board also places high emphasis on ensuring the development of diversity in the senior management roles within the Scottish Widows Group and supports LBG’s objective of achieving 40% of senior roles held by female executives by 2020 and 8% of senior roles held by B.A.M.E executives by 2020. This is underpinned by a range of policies within LBG to help provide mentoring and development opportunities for female and B.A.M.E executives and to ensure unbiased career progression opportunities. Progress on this objective is monitored by the People Committee of the Board and built into the assessment of executive performance.