Businesses today are finally waking up to the importance of being equitable, diverse, and inclusive (EDI). Pledges and policies abound, with statements boldly displayed on websites, glossy posters highlighting EDI commitments, and announcements of new initiatives. But there’s a serious disconnect between those promises and the actual impact within many organisations.

It’s not enough to simply say your company supports EDI. If your leadership remains homogenous, your recruitment processes reinforce barriers, and your culture isn’t truly inclusive, then those promises ring hollow. The gap between policy and performance is concerning, and it’s not only hurting underrepresented groups—it's harming your business, too.

The Leadership Gap

Across the UK, stark gaps persist in leadership roles when it comes to diversity. Consider these statistics:

• Disability leadership gap: Just 3.2% of FTSE 100 company board members disclose having a disability, despite over 20% of the UK population living with a disability.The full report can be accessed here.

• Ethnicity diversity: According to the Parker Review, only 1 in 10 management roles in the UK are held by people from ethnic minority backgrounds, and in FTSE 100 companies, only 3.7% of board positions are held by individuals from ethnic minority backgrounds.

• Gender pay gap: Women earn, on average, 15.4% less than men across the UK. At the leadership level, women make up just 37% of boards in FTSE 100 companies, and fewer still are in C-suite roles.

This is not OK.

Diversity and inclusion can’t just be a tagline; they must be built into the fabric of an organisation.

Why EDI Matters

Being a business that embeds equity, diversity, and inclusion deeply into its culture pays off. Here are the top five reasons why EDI makes better businesses:

1. Innovation: Diverse teams bring a wider range of perspectives, leading to more creative and innovative solutions.

2. Talent Attraction and Retention: Companies that are visibly diverse and inclusive attract a wider talent pool and retain employees better, reducing turnover costs.

3. Customer Connection: Reflecting the diversity of your customer base strengthens relationships, boosts customer loyalty, and enhances brand perception.

4. Financial Performance: Research from McKinsey shows companies with diverse executive teams are 33% more likely to outperform their peers on profitability.

5. Resilience and Adaptability: Inclusive cultures are more adaptable and better equipped to navigate challenges because they tap into the full potential of their workforce.

Is Your EDI Policy Up to Scratch?

Here’s what you need to consider to ensure your EDI policy is not just an empty gesture:

1. Governance: Is your board and senior management team as equitable, diverse, and inclusive as it could and should be? A leadership team that reflects a variety of backgrounds and experiences makes for stronger decision-making.

2. Recruitment Policies and Processes: Are your hiring practices designed to eliminate unconscious bias? Are you actively seeking talent from diverse backgrounds? Simple changes can open doors for underrepresented groups.

3. Gender Pay Gap: Have you reviewed your gender pay gap, and are you taking real steps to close it?

4. Accessibility: Not all disabilities are visible. Are you offering reasonable adjustments to make your workplace truly accessible to everyone?

5. Marketing Collateral: From the language you use to your website images, are you accurately representing underrepresented groups? If people can’t see themselves in your communications, why would they feel like they belong in your company?

6. Events: Are your speaker panels and events inclusive? Diversity on stage reflects diversity in action. Some helpful guidance from IIED here

If people from underrepresented groups can’t see others like themselves in your company or its communications, why would they ever feel they belong? Representation matters.

How to Improve

Just changing the recruitment process or writing an EDI policy won’t improve the culture of your organization. Offering an opportunity to join your company when your communications feature people who all look broadly the same isn’t an opportunity. It’s a barrier.

Being authentically equitable, diverse, and inclusive takes more than policies—it requires proactivity. Here are five ways you can engage with underrepresented groups:

1. Partner with Diverse Networks: Collaborate with organizations and networks that support underrepresented groups, like Women in Business, Black Young Professionals Network, and LGBTQ+ networks.

2. Mentorship Programmes: Develop mentorship and sponsorship programs to nurture diverse talent and create leadership pipelines.

3. Accessible Job Descriptions: Review job descriptions for biased language, ensure they are accessible to those with disabilities, and promote roles across diverse job boards.

4. Bias Training: Implement regular training on unconscious bias, privilege, and microaggressions to ensure your team understands how to build an inclusive workplace.

5. Inclusive Benefits: Offer benefits that cater to diverse employees, such as flexible working for carers, mental health support, and parental leave policies that reflect all family structures.

Courage and Commitment

Bridging the gap between policy and performance takes courage and commitment. Leaders need to do more than tick boxes or craft well-worded statements. They need to be willing to make uncomfortable changes, take responsibility for shortcomings, and actively create a culture where every employee, no matter their background, feels they belong.

We can and must do better to shape a cleaner, greener, fairer world. And that’s down to each and every one of us.

Is your EDI policy truly up to scratch? What more can you do to make your business authentically equitable, diverse, and inclusive?

Let’s shape a better future together.