City Hive has announced the launch of the investment management industry’s first diversity, inclusion and culture kitemark.
The Action, Culture and Transparency (ACT) kitemark allows companies in the industry to address, assess and catalyse an improvement within their organisation’s culture, as well as in the wider investment industry, and ultimately in the companies that they invest in, confirmed City Hive. The company partners with firms in the investment management industry to create more diverse, equitable and inclusive corporate cultures.
APPROVED INCLUSIVE CULTURE STANDARD
“While there has been progress in recent years by firms engaging with and holding the companies they invest in accountable on diversity, inclusion, equality and culture, there has been no industry standard or measurable way to address these issues across the investment management industry,” stated Bhavini ‘Bev’ Shah, Chief Executive of City Hive.
“The ACT kitemark establishes an industry agreement regarding the need for a collective vision of change. We as an industry must ensure that we are beyond reproach by meeting the same improved and inclusive culture standards that we hold the companies we invest in to,” stressed Shah. “Moreover, the ACT kitemark establishes diversity and inclusion as a business objective from the top down and will help bring an end to the greenwashing of these imperative issues that is currently taking place by firms”.
Shah and City Hive’s Chief Strategist Mandy Kirby developed the ACT kitemark. Shah is an experienced multi manager and fund analyst. She has previously worked for Aviva Investors and HSBC Investments, and has a history of high calibre qualitative and quantitative due diligence analysis in assessing and monitoring current and prospective external managers, investment teams, investment processes and firms.
FUTURE-PROOFING THE INDUSTRY
Kirby was part of the leadership team at the UN supported Principles for Responsible Investment and Director of Reporting Assessment and Accountability. She was responsible for disclosure, collaboration and coordination with global reporting and standard setting bodies, including GRI, SASB, IIRC, WBCSD, CDP, AOPD.
Commenting on the ACT Kitemark, Kirby stated: “Corporate culture is the heart and soul of every company. Superficial materials, such as company websites, brochures, marketing materials and company accounts are often the only way for asset owners and investors to assess corporate culture, diversity and inclusion. These are woefully inadequate. We need to future-proof the investment management industry. That means we need to truly assess, measure and improve corporate culture across the industry. This cannot be done by using ESG frameworks, rankings and marks as a proxy to measure corporate culture and diversity and inclusion.”
C-LEVEL RESPONSIBILITY
The ACT kitemark encompasses six pillars core to City Hive’s mission to implement, measure and catalyse change across the industry, internally and externally.
- Change
- Integrity
- Commitment
- Engagement
- Culture
- Talent
The pillars are split into two classes; outward looking – focused on an industry vision of progress (Change, Integrity and Commitment); and inward looking – to cover both policy and individual responsibility (Engagement, Culture and Talent). Each pillar has C-level responsibility for oversight across business functions, recommended guidance areas and questions. It also specifies good practice and relevant initiatives to help catalyse change internally.
HOLDING FIRMS ACCOUNTABLE FOR DIVERSITY
“Creating greater diversity should be a priority and business objective for organisations to help them meet their sustainability responsibilities. Industry wide codes and charters do not work. They are aspirational, but do not set benchmarks,” explained Shah.
“Companies need to be held accountable. But without measurable results and an industry standard, there is no way to demonstrate genuine, impactful change internally or externally. The ACT kitemark is a harbinger of change for the industry to create greater diversity, equality and inclusion. Moreover, it will help bring an end to the greenwashing of diversity and inclusion. We must be the change that we want to see, and we are demanding it from the industry. Change is happening now.”
Click here for more information about the ACT Kitemark.
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