One in five (20 per cent) defined benefit (DB) schemes see diversity, equity and inclusion (DEI) issues as an extra governance burden and are unlikely to act until they are formally required to do so, a survey conducted by LCP has revealed.

The survey, which included the views of 160 respondents, also found that 43 per cent of respondents were supportive but not yet acting, while 37 per cent were supportive and had taken specific steps to address this area for their schemes.

The top three barriers to taking more action on DEI issues were identified in the survey as recruitment, engagement, and resource.

A third of respondents said they had difficulties finding trustee candidates full stop, let alone diverse candidates, with another common frustration being the overall lack of diversity within the pensions industry and their particular sectors.

Another third of respondents questioned the benefits of DEI and many cited a wider lack of understanding of those benefits in the industry, as well as a lack of appetite to take these issues forward.

A fifth of respondents struggled to prioritise DEI against the growing list of challenges faced by trustee boards.

LCP partner, Jill Ampleford, commented: “It’s clear we’re still a long way from industry consensus on what action, if any, to take in response to DEI issues.

“The merits of strong DEI practices are well researched and understood but are just one of many pulls on trustee time at the moment, and we sympathise that it can be hard to know where to start.

“We hope that some of the quick wins we suggest in our guide are a helpful starting point for trustees and look forward to seeing further progress in the pensions industry in the coming years.”

The data forms part of LCP’s annual Chart your own course report, which uses an industry survey and other analysis to explore the latest trends and ideas in DB pension scheme journey planning and will be published next month.

LCP said it will cover tips to overcome these barriers in their upcoming report, and have also recently produced a guide to help trustees navigate DEI issues and to highlight the benefits of an inclusive decision-making environment.

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