Men and women working together for real change

9 March 2016 The 30% Club

. The 30% Club is a group of Chairs and CEOs taking action to create a better balance of men and women at all levels of their organisations as a business imperative rather than a ‘women’s issue’

. The Club launched in the UK in 2010 with a goal of a minimum of 30% women on FTSE-100 boards. There are now 174 members of the UK Club and the proportion of female FTSE-100 directors has risen from 12.5% to 26%

. As of 2016 we have extended the scope of the above target and the goal is a minimum of 30% women on FTSE- 350 boards by end 2020. In tandem with this – and in order to ensure that this 30% remains sustainable – we are also aiming to reach a minimum of 30% women on Executive Committees of FTSE-100 companies by 2020.

. The 30% Club is becoming an international community. It complements and amplifies individual company efforts and existing groups through collaboration, measurable goals and joined-up actions

. The 30% Club does not believe in mandatory quotas. Instead, the 30% Club is aiming for meaningful, sustainable, business-led change, as recommended by Lord Davies

. Scarce representation of women at senior levels is a global phenomenon. Local 30% Clubs have been launched in the US, Hong Kong, , Southern Africa, Australia, Malaysia, Canada, Italy and the GCC.

Business leadership: the catalyst for accelerating real change

1 Women on UK Boards – a breakthrough

30.0 26.0 FTSE-100: % women directors 25.0 25.0 1999-2016 23.0 19.3 20.0 17.4 15.0 15.0 12.6 11.7 12.2 9.4 10.0 6.9

5.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Professional Boards Forum BoardWatch. Data kindly provided by BoardEx and The Female FTSE Board Report

. 56 FTSE-100 companies now have at least 25% women on their boards . 29 FTSE-100 companies have already reached 30% . 31.4% women non-executive directors – focus is now on executive roles . FTSE-250 seeing strong improvements from a low base; now 17 all-male boards down from 131 in 2010

An epiphany over the past 5 years in the UK: now seen as a business issue not a women’s issue

2 30% Club UK Members

FTSE-100 Sir Michael Rake, BT Group John Barton, EasyJet/ Next*/ Catlin Group John Stewart, Legal & General Group Donald Brydon, Sage/ Stock Exchange Carl-Henric Svanberg, BP/ AB Volvo Dame Alison Carnwath, Land Securities* Robert Swannell, Marks & Spencer*/ Shareholder Executive Sir Roger Carr, BAE Systems Michael Treschow, Unilever* Stuart Chambers, ARM Holdings/ Rexam David Tyler, / Sainsbury’s* Ian Davis, Rolls Royce Andrew Duff, Severn Trent/ FTSE-250 Sir Charles Dunstone, Carphone/ TalkTalk Dame Helen Alexander, UBM*, Port of London Authority Douglas Flint, HSBC Holdings plc Charles Berry, Senior/ Weir Sir Peter Gershon, National Grid/ Tate & Lyle Allan Cook, WS Atkins*/ SEMTA Sir Gerry Grimstone, Standard Life* Geoff Cooper, Card Factory/ Bourne Leisure/ Truth Corps Sir Philip Hampton, GlaxoSmithKline Ian Durant, */ Capco Rick Haythornthwaite, Anita Frew, Croda International Andrew Higginson, WM / N Brown* Stephen Koseff, Dr Franz Humer, Diageo* Paul Lester, John Laing Fund/ Greenergy/ Survitec/ Norland/ Peverel/ Parabis John McFarlane, Barclays*/ TheCityUK Greg Lock, Glen Moreno, Virgin Money plc* Frank Meysman, Thomas Cook Group* Patrick O’Sullivan, Old Mutual* Martin Thomas, * Sir John Parker, Anglo American/ Ombu Group/ Sir John Peace, Burberry*/ Standard Chartered

* 30% or more women on its board as at January 2016

3 30% Club UK Members (ctd)

PROFESSIONAL SERVICES Paul Rawlinson, Baker & Mackenzie John Banister, Wiggin Christopher Saul, Slaughter and May Mark Bomer, BDO Paul Smith, Eversheds William Boss, King & Wood Mallesons Alexander Y. Thomas, Reed Smith Marcus Bowman, Holman Fenwick Willan LLP Ben Tidswell, Ashurst Michael Chissick, FieldFisher Steve Varley, EY Jeremy Cohen, Dentons Penelope Warne, CMS Cameron McKenna Simon Collins, KPMG David Cruickshank, Deloitte Global FINANCIAL SERVICES Fiona Dunsire, Mercer UK Mark Austen, LV= Asset Management Robert Elliott, Linklaters Sir Brian Bender, London Metal Exchange Richard Foley, Pinsent Masons Ana Botín, Santander Michael Francies, Weil, Gotshal & Manges Dominic Casserley, Willis / UK Charities Aid Foundation Charlie Geffen, Gibson, Dunn & Crutcher Roger Cobley, Stamford Associates Christine Hodgson, CapGemini/ The Careers & Enterprise Company Michael Cole-Fontayn, BNY Mellon EMEA David Hudd, Hogan Lovells Euan Fraser, Alpha Financial Markets Consulting Will Lawes, Freshfields Bruckhaus Deringer Hans Georgeson, Architas Matthew Layton, Clifford Chance Richard Gnodde, Goldman Sachs International Lisa Mayhew, Berwin Leighton Paisner Bill Gourlay, Idea Group Mike McTighe, WYG plc John Heaps, Building Society David Morley, Allen & Overy Lady Judge, Institute of Directors/ Pension Protection Fund Paul Morris, Towers Watson Rich Laxer, GE Capital International Ann Olivarius, McAllister Olivarius Julie Meyer, Ariadne Capital Chris Osborne, FTI Consulting Helena Morrissey, The Investment Association Stephen Parish, Norton Rose Fulbright John Nelson, Lloyd’s of London Ian Powell, PwC Sir Simon Robertson, Simon Robertson Associates

4 30% Club UK Members (ctd)

FINANCIAL SERVICES CONTINUED Tessa Laws, Bagir Group Limited William Rucker, / Lazard Lord Leitch, Bupa/ Intrinsic Financial Services/ FNZ Andrew Sibbald, Evercore Charlie Mayfield, John Lewis/ UK Commission for Employment & Skills Paul Smith, CFA Institute Ahmed Mazhari, Genpact Sir David Walker, Winton Capital Group James Muir, Volkswagen UK Bob Wigley, Tantalum Corporation Peter Norris, Virgin Holdings Roger Yates, Pioneer Global Asset Management Alex Ricard, Pernod Ricard Sir Nigel Rudd, Heathrow Airport Holdings/ Business Growth Fund/ RECRUITMENT/ EXECUTIVE SEARCH Debra Searle, MIX Diversity Developers Robin Buchanan, PageGroup Shoshana Stewart, Turquoise Mountain Chris Cooke, NP Group Karen B. Greenbaum, AESC UNIVERSITIES & HIGHER EDUCATION Sharon Mullen, Mullwood Partnership Apurv Bagri, London Business School Sir Leszek Borysiewicz, University of Cambridge COMMUNICATIONS/ MEDIA Dame Glynis Breakwell, University of Bath Susan Gilchrist, Brunswick Group Hazel Brooke, Glasgow Caledonian University Debbie Klein, The Engine Group Garry Coutts, University of the Highlands and Islands Clare Parsons, Lansons Jennifer Craw, Robert Gordon University Geoff Dawson, Sheffield Hallam University CORPORATE The Earl of Derby, University of Miranda Curtis, Waterstone’s Professor Alistair Fitt, Oxford Brookes University Jeremy Farrar, Wellcome Trust Professor Sir David Greenaway, University of Nottingham Robert Gillespie, The Boat Race Company Professor Andrew Hamilton, University of Oxford Peter Hickson, Chemring Peter Horrocks, The Open University Brent Hoberman, mydeco.com/ lastminute.com/ made.com/ Stephen Howlett, The University of Greenwich PROfounders Capital/ Founders Forum Mark I’Anson, Newcastle University

5 30% Club UK Members (ctd)

UNIVERSITIES & HIGHER EDUCATION CONTINUED Nathan Elvery, London Borough of Croydon Professor Patrick Johnston, Queen’s University Belfast John Griffith-Jones, Financial Conduct Authority Jane Kelly, Brunel University London Dame Deirdre Hutton, Civil Aviation Authority Peter Kyle, University of Westminster Sir Bob Kerslake, Peabody Trust Sir Moir Lockhead, University of Aberdeen Paul Leinster, Environment Agency Professor April McMahon, Prifysgol Aberystwyth University Stephen Lovegrove, Department of Energy & Climate Change Professor Anton Muscatelli, University of Glasgow Sir Nicholas Macpherson, HM Treasury Professor Paddy Nixon, University of Ulster Sir Nicholas Montagu, Financial Ombudsman Service Professor Andrea Nolan, Edinburgh Napier University Nicky Morgan, Secretary of State for Education & Minister for Women and Equalities Professor Tim O’Shea, University of Edinburgh Mark Neale, Financial Services Compensation Scheme Professor Louise Richardson, University of St Andrews Andrew Parker, MI5 Dr Gill Rider, University of Southampton Philip Rutnam, Department for Transport Professor Colin Riordan, University Dame Nancy Rothwell, University of INDEPENDENT AMBASSADORS Fiona Sandford, University of Stirling David Childs, formerly Clifford Chance Professor Nigel Seaton, Abertay University Ian Dormer, formerly Institute of Directors Professor Christina Slade, University of Bath Spa Douglas Ferrans, formerly IMA Janet Swadling, Scotland’s Rural College Karin Forseke, formerly Sir David Warren, University of Kent Sir Ian Gibson, formerly Wm Morrison Barbara Wilding, Cardiff Metropolitan University Tony Hobson, formerly Sage Sir David Lees, formerly Court of The Bank of England PUBLIC SECTOR Sir Richard Olver, formerly BAE Systems Sir Win Bischoff, Financial Reporting Council/ JP Morgan Securities Baron David de Rothschild, formerly Rothschild Tracey Bleakley, Hospice UK Jonathan Scott, formerly Herbert Smith Freehills Lesley Cowley, DVLA Debbie White, formerly Sodexo Martin Donnelly CMG, Department for Business, Innovation & Skills

6 US 30% Club Members

Peter Grauer, Founding US Chair and Chairman of Bloomberg

Dominic Barton, McKinsey & Co. Kenneth M. Jacobs, Lazard Adam Siegel, Freshfields Bob Bechek, Bain & Co Nancy Karch, Kate Spade James C. Smith, Thomson Reuters Wayne Berson, BDO Muhtar Kent, Coca Cola Truett Tate, ANZ Michael Blair, Debevoise Tom King, Barclays Conrado Tenaglia, Linklaters LLP Scott Brandman, NY Co-Managing Partner William P. Lauder, The Estée Lauder Companies, Inc. Kent Thiry, DaVita Healthcare Partners Inc. of Baker McKenzie Terry J. Lundgren, Macy’s Inc. Sandy Thomas, Reed Smith Warren Buffett, Berkshire Hathaway Mickey Matthews, Stanton Chase “Tiger” Tyagarajan, Genpact Patrick J. Burke, HSBC USA James McCaughan, Principal Global Investors John Veihmeyer, KPMG Ursula Burns, Xerox Raymond W. McDaniel, Moody’s Corporation Tracy R. Wolstencroft, Heidrick & Struggles Dominic Casserley, Willis Group Holdings Bob Moritz, PWC Mike Corbat, Citigroup Brian Moynihan, Bank of America William S. Demchak, The PNC Financial Services Group Clarke Murphy, Russell Reynolds Associates Richard Edelman, Edelman Sheila Penrose, Jones Lang LaSalle Roger W. Ferguson, TIAA-CREF Valerie Radwaner, Paul Weiss Larry Fink, BlackRock Michael Roth, Interpublic Group Mike Fucci, Deloitte Sheryl Sandberg, Facebook Susan Gilchrist, Brunswick Group George Scangos, Biogen Idec Karen B. Greenbaum, AESC Craig Bromley, President of John Hancock David Greenwald, Fried Frank David Fox, Partner at Kirkland & Ellis Mindy Grossman, HSN, Inc. Peter Hancock, CEO of AIG Gerald Hassell, BNY Mellon Stephen J. Immelt, CEO of Hogan Lovells Rick Haythornthwaite, Mastercard Greig T. Schneider, U.S. Leader of Egon Zehnder Stephen R. Howe, Jr., EY John D. Williams, President & CEO of Domtar

7 The Role of Chair/CEO Members

. The ‘asks’ are a belief in the value of better gender balance at senior levels and the view that businesses and senior business leaders should drive the change (not a quota)

. There is no requirement to have 30% women on the board or management committees - the under- representation of women at senior levels is a global phenomenon, so better gender balance is usually an aspiration rather than a reality

. A small group of senior Chairs act in an advisory capacity to each local steering committee

. There is no membership charge. The 30% Club works through individuals volunteering their time and companies and other organisations hosting events (we do not charge attendance fees). Events have been hosted by, amongst others, No. 10 Downing Street, Bloomberg, BNY Mellon, Deloitte, EY, the , GE Capital, Goldman Sachs, KPMG, Linklaters, the , Nomura, Rothschilds

. A steering committee and sub-groups work on components of an intensive, concerted programme of change. There are global efforts – such as the investor group and pipeline initiatives – plus local actions to address country-specific needs

8 Bringing cohesion from schoolroom to boardroom

• Evangelism by those in power • Research focused on cognitive and behavioural diversity

• Cross-party political support • Speakers for Schools • Higher Education programme • Business School Scholarships

• Amplifying local efforts

• Practical workshops and cross- company mentoring

• What gets measured gets managed • Constructive engagement including better disclosure, voting

9 The business case

. There is clearly a powerful intuitive argument for having a varied board and executive team, with complementary skills and less danger of ‘groupthink’

. 30% is the proportion when the contributions of a member of a minority group are valued in their own right – critical mass

. Institutional investors are increasingly considering overall board effectiveness including diversity as an important aspect of good governance

. The 30% Club is focused primarily on the greater effectiveness of organisational diversity. However, 6 studies based on different geographies corroborate the intuition that diversity at board and management levels helps improve financial performance. Please see www.30percentclub.org for these articles: 1. McKinsey ‘Women Matter’ 2011 2. Catalyst ‘The Bottom Line: Corporate Performance and Women’s Representation on Boards’ 3. Citigroup ASX100 Women on Board Analysis August 2011 4. SocGen Getting the Right Women on Board October 2011 5. Credit Suisse Gender Diversity and Corporate Performance August 2012 6. Credit Suisse The CS Gender 3000: Women in Senior Management September 2014

. We are also analysing the impact of broader diversity at senior levels on risk management

. Academic research into the Norwegian experience also suggests achieving balanced boards through quotas can have a detrimental effect (University of Michigan The Changing of the Boards: The Impact of Mandated Female Board Representation May 2011)

10 Developing the pipeline: key to sustainable change

. Broad factors behind the under-representation of women at senior levels: sociological, cultural and traditional working practices . Creating a better gender balance at all levels requires a sustained series of talent management efforts, modernising working practices for all. Countries with boardroom quotas have failed to develop the pipeline (only 2% of CEOs in Norway are women) . The 30% Club initially focused on professional services firms, where graduate intake is 50:50 but few women make partner. McKinsey led a project involving 700 people from 17 firms, reporting findings December 2012. The results formed the basis for recommendations made to business leaders to translate the findings of the study into collective, workable best practice, and over the past three years these firms have sought to drive change, leveraging the shared learnings across the sector. For law firms, the likelihood of men being promoted compared to women has now reduced from 10x to 3x. . The 30% Club’s ‘Balancing the Pyramid’ project involves a broader group of companies: . Accenture, , BA, Barclays, BNY Mellon, BP, BT, Centrica, Christies, Diageo, FCA, GE Capital, IMI plc, J P Morgan, KPMG, Ladbrokes, Lloyds Banking, LVMH, Marks & Spencer, McKinsey, More Difference, Newton, Pearson, Pernod Ricard, PwC, Sainsbury’s, Shell, Standard Life, The Miles Partnership, Windsor Leadership and YSC . ‘Cracking the Code’, research led by behavioural psychologists YSC and KPMG for the 30% Club, explodes ten myths about what holds women back and offers practical steps for companies so efforts can become more on-target

. The 30% Club’s cross-company mentoring scheme is now in its third year, with 47 organisations involved and over 630 participants taking part. . Partnerships with business schools have grown from strength to strength and the 30% Club now offers 19 scholarships for women thanks to its relationships with Cambridge Judge, ESMT (Germany), Henley, Imperial College, the Irish Management Institute, London Business School, SAID Business School at Oxford University and Queen’s Smith Business School in Canada. . A Higher Education initiative was launched in 2015 with 4 key focus areas: improving gender diversity within governing bodies, improving gender diversity within faculties, surveying female and male student attitudes to ambition, opportunity and University culture and raising awareness around academia as a source of talent for corporate boards. . A programme for UK state schools launched January 2015 in collaboration with Speakers for Schools

11 The investor group – engaging constructively

. Our approach is one of constructive engagement with listed companies as part of broader analysis of a company’s governance and development of future top talent.

. Individual countries obviously have differing governance codes and local practices – we are working within each of these through a ‘soft power’ approach (not hard-line activism)

. 30% Club Investor group coordinates institutional investors and asset owners. We have agreed best practice guidelines for constructive engagement with companies around the issue

. There are 27 institutional members of the Investor group representing c.£11trn AUM:  Aberdeen Asset Management, Allianz Global Investors, Aviva Investors, AXA Investment Managers, BlackRock, Church Investors Group, Ecclesiastical, F&C Asset Management, Goldman Sachs Asset Management, Hermes Investment Management, HSBC Bank Pension Trust UK, J P Morgan Asset Management, Jupiter Asset Management, Legal & General Investment Management, The Local Authority Pension Fund Forum, The London Pensions Fund Authority, Mercer, Newton Investment Management, Quilter Cheviot Investment Management, Old Mutual Global Investors, PIMCO, Royal London Asset Management (CIS), RPMI Railpen, SSgA, Standard Life Investments, Threadneedle and Towers Watson. . Local initiatives are developed alongside an overarching approach

. We encourage improved disclosure beneath the board and exco levels, so progress can be measured

. Where insufficient action is taken, individual members of the investor group are prepared to use their voting rights to encourage greater response

Moving the issue beyond a specialist ESG effort into mainstream company analysis

12 Five replicable factors of success

1. A measurable goal with a defined timetable

2. Supportive public policy – working closely with the Davies Committee

3. Change driven by those in power

4. Openness to collaborate

5. Concerted, consistent, cohesive actions - from schoolroom to boardroom

Supercharged by the realisation that including more diverse talent is the future

13 The international mission

. Scarce representation of women at senior levels is a global phenomenon; the aim is to encourage an international, concerted effort to solve this, learning from the positive UK experience

. The 30% Club is complementary to individual country and company efforts – working together we can accelerate change. A global network of business leaders amplifies the impact

. 30% Clubs were launched in:

 in Hong Kong in 2013

 in the Southern Africa, the US and Ireland in 2014

 in Australia, Malaysia, Canada, Italy and the GCC in 2015

. The approach is relevant for countries with quotas (to help with the pipeline) and those where existing voluntary efforts are fragmented and progress has stalled

. Established efforts can be globalised where appropriate (investor group, pipeline initiatives and executive search approach), supplemented by initiatives relevant to the local marketplace

14 Working Structure (UK)

Our Members 174 Chairs/ CEOs/ equivalents

GOVERNING BODY

Campaign Manager Steering Committee Advisory Executive Media Françoise Higson 35 members Tamara Box Brenda Trenowden – Global Chair Jamie Brookes Mary Goudie Emily – Deputy Chair Gay Collins Emma Howard Boyd Helena Morrissey – Founder Melanie Richards

BOARDROOM EFFORTS PIPELINE EFFORTS RESEARCH INTERNATIONAL EXPANSION Stakeholder engagement with: Stakeholders engagement with: Shifting the Needle Australia Chairs CEOs Think Future Study Canada Investors Pipeline Initiatives Changing Places: Women on GCC Government Boards Hong Kong Executive Search Firms Ireland BALANCING THE PYRAMID Italy Cracking the Code Malaysia Everyday Inclusion Southern Africa Pipeline Dynamics United States

Target: 30% women on Target: 30% women on Target: distillation of actionable Target: expansion into G19 FTSE 350 boards by 2020 FTSE 100 ExCos by 2020 recommendations for companies countries

SCHOOLROOM TO BOARDROOM CONTINUUM

Speakers for Schools Business School Mentoring Sector Specific Efforts Women for Media . Cross-Company: . Higher Education Scholarships i. early-career . Professional Services Firms ii. mid-career . Public Sector iii. senior-career . Sport & Business . Sport & Business

15 UK Steering committee

. Karin Barnick, Korn Ferry . Françoise Higson, ANZ . Jo Bostock, Women’s Sport Trust . Emma Howard Boyd, ShareAction . Tamara Box, Reed Smith . Nick Jarman, PwC . Diana Brightmore-Armour, ANZ . Claudia Kohler, Newton . Jamie Brookes, MHP Communications . Emily Lawson, Kingfisher Heather McGregor, Taylor Bennett . Caroline Carr, Goldman Sachs . . Helena Morrissey, Newton (Founder) . Gay Collins, Montfort Communications . Elizabeth Passey, J Stern & Company . Pavita Cooper, More Difference . Anne Richards, Aberdeen Asset Management . Niamh Corbett, Board Intelligence . Melanie Richards, KPMG . Melissa Di Donato, Salesforce . Henrietta Royle, British Bankers’ Association . Liz Dimmock, Women Ahead . Joanna Santinon, EY . Mary FitzPatrick, GE Capital . Jane Scott, Professional Boards Forum . Melanie Gee, Lazard . Rachel Short, Why Women Work . Katushka Giltsoff, The Miles Partnership . Claire Tracey, The Boston Consulting Group . Mary Goudie, Labour Peer . Brenda Trenowden, ANZ (Global Chair) . Vimi Grewal-Carr, Deloitte . Siân Westerman, Rothschild . Claudia Harris, The Careers & Enterprise Company . Sarah Wiggins, Linklaters

16 Contact points for further information

Website www.30percentclub.org General enquiries Brenda Trenowden, [email protected] Media enquiries [email protected] Administration and website [email protected] Social Media and Career Strategy [email protected] Campaign Manager [email protected] International enquiries [email protected] Australia Country Lead: Patricia Cross Main contact: [email protected] Canada Country Lead: Beatrix Dart Main contact: [email protected] GCC Country Lead: Farah Foustok Main contact: [email protected] Hong Kong Country Lead: Su-Mei Thompson Main contact: [email protected] Ireland Country Lead: Marie O’Connor Main contact: [email protected] Italy Country Lead: Odile Robotti Main contact: [email protected] Malaysia Country Lead: Anne Abraham Main contact: [email protected] Southern Africa Country Lead: Colleen Larsen Main contact: [email protected] US Country Lead: Kiersten Salander Main contact: [email protected]

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