Many pension scheme trustees are facing challenges in implementing diversity, equity and inclusion (DE&I) processes, despite 91 per cent feeling confident in their understanding of The Pension Regulator’s (TPR) DE&I guidance, according to Barnett Waddingham.

The research revealed that around two thirds (65 per cent) of appointed pension scheme trustees had undergone a few training sessions on DE&I practices, with 17 per cent participating in several sessions.

Meanwhile, 83 per cent of trustees felt confident that they possessed all the necessary knowledge about trusteeship and expressed no need for further training.

This confidence extended to the understanding of TPR’s DE&I guidance, as 92 per cent of trustees said their boards fully understand the guidance for schemes.

However, almost half (45 per cent) of appointed pension scheme trustees admitted that, despite having a DE&I strategy, it had no bearing on their trustee hiring processes, contrary to current TPR DE&I guidance.

Furthermore, 11 per cent said they were still creating a DE&I strategy, 3 per cent said they did not yet have a strategy in place but plan to make one, and 2 per cent had no strategy or aspiration to create one.

Barnett Waddingham also found that beyond the hiring process, DE&I did not currently play a part in several key governance areas, with 26 per cent stating that it did not play a part in choosing a chair for the board and 29 per cent said it did not play a part in trustee succession planning.

Indeed, this widespread lack of DE&I integration raised concerns about the effectiveness of the DE&I practices among the 85 per cent of schemes that claimed to have such strategies in place.

One limitation that trustees identified in understanding industry governance best practices was time, as 71 per cent stated that they were too busy to research and learn about best practices, leading to 77 per cent seeking support from external advisers.

Although DE&I was a high priority for 42 per cent of trustees, the research found that other strategic priorities for the next 12 months could be diverting their focus.

In particular, almost half (43 per cent) said the strategic priorities diverting focus was strategy setting, including endgame planning, and 38 per cent said adviser reviews and replacements.

Meanwhile, 34 per cent cited TPR's ew General Code, including Effective System of Governance & Own Risk Assessments.

Commenting on the research, Barnett Waddingham pension and executive management services principal, Christine Kerr, said it was “encouraging” to see that a majority of trustees feel confident in their understanding of DE&I guidance, but the findings highlight a “critical gap” between knowledge and implementation.

Kerr emphasised: “Trustees must not only verbally commit to DE&I strategies, but also actively integrate these principles into their governance practices to foster truly inclusive and equitable pension schemes.

“This includes ensuring that DE&I considerations are embedded in trustee hiring, nomination, succession planning, and decision-making processes.

“Facilitated discussion sessions can be a great way to enable trustees to translate their understanding and beliefs on DE&I, providing a structured environment for trustees to address challenges, share best practices, while developing actionable plans that align with regulatory guidance.”

She said it was “vital” for trustees to resolve DE&I integration issues to ensure “clear and effective” communications for members.

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