EDI targets alone will not transform the pensions industry — and few schemes plan to set new ones. But while formal target-setting has stalled, changes in trustee recruitment practices suggest a shift toward more inclusive, skills-focused approaches that could broaden the talent pool and improve board diversity over time. Here is what the latest EDI Report, produced by mallowstreet in partnership with Cardano, has revealed.

 

 

Despite recent diversity gains, the pensions industry still lacks representation from key groups — notably military veterans and gender non-binary individuals. Yet target setting appears to be stalling: only 28% of schemes and firms have EDI targets in place, and very few plan to set any new ones. Additionally, fewer than half collect any EDI data on their trustee boards, with anonymity only possible for larger teams.

 

While the industry admits targets can help drive change, if poorly designed, they risk shrinking the talent pool or encouraging box-ticking. For smaller schemes or those nearing wind-up, representation targets may not be relevant at all — instead, the focus should be on fostering an inclusive culture and offering practical training. Inclusion removes barriers, attracts broader talent, and helps boards better reflect their members. Collecting diversity data responsibly can enhance decision-making and communication, but must respect privacy and align with each scheme’s capacity and goals.

 

 

 

Just 8% of schemes currently pursue EDI specifically to support underrepresented groups — and even fewer focus on retention or succession planning. But this reflects a wider challenge: pensions remains a niche and often less visible career path within financial services, as trustee roles did not always start off as full-time jobs before the rise of professional trustee firms.

 

Encouragingly, schemes and trustee firms are beginning to rethink how they recruit. Nearly two in five plan to refresh role communications — using inclusive language and highlighting transferable skills rather than just experience. A quarter aim to also review criteria for sponsor-nominated trustees, or introduce fixed-term appointments to create natural ‘churn’ in the roles. Reasonable adjustment policies, for trustees with disabilities or caring responsibilities, are also gaining traction.

 

Some trustee firms are now considering apprenticeships, mentoring schemes, and anonymised recruitment — all areas that saw little interest just a year ago. Over 10% now plan to adopt at least one of these approaches.

 

Deferred members may also play a bigger role: 18% of schemes plan to include them in nomination processes for member-nominated trustees (MNTs), which is critical given how many DB schemes now consist mainly of deferred or retired members. Nearly three-quarters of schemes believe MNTs help improve diversity of thought on boards — but attracting new MNTs remains difficult.

 

 

Trustees agree that the UK pensions industry must better represent underrepresented groups. Challenging biases and broadening recruitment to include diverse experiences, skills, and socio-economic backgrounds are crucial steps — so the Pensions Regulator rightly focused on them in its initial EDI guidance. 

 

Inclusive hiring practices, reasonable adjustments, and greater visibility of role models can encourage more diverse applicants. Practical steps — like targeted advertising and mentorship — will be key to widening the pool.

 

Tracking demographic data helps identify representation gaps, while focusing on skills and lived experience ensures relevance to today’s membership. Ultimately, reflecting that membership is not just fair — it’s vital to maintaining trust and alignment with a more inclusive society.