Sustainable Business, 2020

Every new year is a fresh start. And every fresh start is a golden opportunity for change. 2020 heralds many changes for the United Kingdom, including the finality of the process of leaving the European Union at the end of this month after a general election delivered a strong mandate for Prime Minister Boris Johnson. But the issues that the UK – and the rest of the world – face around a climate emergency are inclusive for all, and so are the challenges facing large publicly listed businesses, wherever they happen to be. It’s a fast-changing world around technology and innovation, consumer empowerment, social identification and aspiration, and a younger generation claiming its future place based on its own values.

Ending 2019

As 2019 moves towards a close, there remain many questions as to where we are in the United Kingdom when it comes to redefining and living up to our standards of corporate governance, closely watched by the rest of the world. In the wake of a general election yielding a thumping Conservative majority, Prime Minister Boris Johnson has much to do in the weeks and months ahead.

 News of his victory and the ensuing market rally “added £33bn to UK shares” reported The Telegraph in its coverage right after the election. Sterling rallied as the markets caught a whiff of the end of years of uncertainty after the 2016 EU referendum vote. But, as news came that the UK government is to add a new clause to the Brexit bill to rule out any extension to the transition period beyond the end of next year, sterling fell. Uncertainty is not yet over, and there are long-term agreements yet to come around immigration, tariffs and more that affects everyday business decisions. There is also the need to stay attuned to corporate governance.

Gender Diversity: A Step-Change Is Needed

UK business is in danger of stalling on an uphill climb when it comes to the progression of women. Yes, there has been progress in the number of women to be found in boardrooms since targets were first set in 2011. It is progress achieved via investor pressure, closer scrutiny of the appointment process, a great deal of diversity evangelism and the use of public shaming via the media. It is also now painfully apparent that this was always a demand, and not a supply problem.

Now, according to the latest report on the state of play on gender progression from the government-backed Hampton-Alexander review, “a step change is needed for senior leadership roles below board level: 50% of all appointments next year need to go to women, or the 2020 target will not be met.”