Abrdn : Diversity and Inclusion report

Diversity and inclusion report 2021

abrdn.com

A message from our Chief Executive Officer

Stephen Bird,

Chief Executive Officer

What we do must have a real-world impact and help create a better future for all. To truly understand what this future will look like, we need to be curious about the changing world around us. It requires an inclusive culture, where diverse perspectives drive our actions.

Evidence continues to show how a commitment to diversity and inclusion contributes to fairer and more effective businesses - more balanced decisions, greater innovation, better client outcomes. We know that the impact of this also extends to the role we play as a responsible investor and in the communities we are part of.

The impact of the pandemic has made this all the more significant. For many of us, the way we live and work has changed beyond recognition since the onset of COVID-19. There are also many existing social inequalities that have been highlighted and compounded. Movements for change including Black Lives Matter and #MeToo have been profoundly felt and have generated important global conversations.

We are constantly looking for ways to go further: to make sure that our people can be at their best; to shape new and better ways of working; and to contribute to wider industry and social change. The targets and pledges we have for improving workforce diversity reflect our ongoing commitment and will help us build on our progress.

I'm proud of what we're already achieving together. We set our first ethnicity target in November 2020 and, after reaching our previous gender representation targets ahead of schedule, our new ones will challenge us to do more. My leadership team are driving action plans across our regions and functions. And when it comes to measuring progress against our peers, I'm pleased to say that we've had some real successes

• a third consecutive year in the Bloomberg Gender Equality Index; named by Citywire as having the highest percentage of female fund managers in companies of our size; and recognition by Equileap as a global leader for employer‑sponsored parent leave.

There is still more to do. We'll keep listening to our clients, collaborating with our colleagues and working across the industry to bring collective influence and impact, and, importantly, speed up progress. We are on a journey to build a new, more inclusive future.

02	Diversity and inclusion report 2021

Contents

A message from our Chief Executive Officer	02
How we think about diversity and inclusion	04
Our four priorities	05
01 Part of our purpose	06
Feature: Corporate Call to Action in the United States	09
02 Inclusive ways of working	10
03 Attracting and developing diverse talent	12
Feature: Reverse mentoring	19
04 Feeling included and valued every day	20
Keeping the momentum going	24
Appendices	26

03

Diversity and inclusion

How we define diversity

Everything that makes us who we are - our backgrounds, our visible and invisible characteristics, as well as how we think, how we work and the experience we bring to our clients.

How we define inclusion

The workplace and culture we are collectively creating for diversity to thrive.

Our framework

. We focus on four priorities to make abrdn a more diverse and inclusive place to work.

. We use our data to identify any diversity under-representation in our workforce - and to plan how we put this right.

. Our actions are led by our executive team, and overseen by our nomination and governance committee.

Our next steps

. Focus on delivery of our leaders' localised action plans

. Build in client feedback to inform actions and embed diversity and inclusion in our client interactions

. Continue to build transparency and improve data quality

. Launch further 'safe spaces' to share and connect

30%

of colleagues are involved in diversity networks and regional inclusion groups, helping build our inclusive culture

13th

in the Hampton-Alexander Review of FTSE 350 gender diversity

+9% women

at senior leadership since 2017, to 36%

5%

reduction in mean gender pay gap

25%

investment decision roles held by women

32%

graduates in UK identify as minority ethnic

Progress against 2025 targets

Gender

Female		Male		Other/Any	Minority Ethnic		Minority		Majority
						Ethnic		Ethnic

June 2021					1%	June 2021
					9%
	45%		36%			46%
Board			Senior		Global	Board
		leadership		workforce
June 2021				June 2021
		June 2021		June 2021
							91%
55%		64%		53%
Target						Target
					6%		18%
20%	40%	20%	40%	47%		47%
Board			Senior		Global	Board	82%
		leadership		workforce
Target				target
		target		target
40%		40%

04	Diversity and inclusion report 2021

Our four priorities

01 02 03 04

Part of

our purpose

We aim to enable our clients to be better investors. By investing responsibly, and making a positive impact through our operations, it helps create a better future for all. A commitment to diversity and inclusion is vital to understanding the needs of all of our stakeholders.

What we say must be what we do. This means embedding this commitment through talent processes, our brand, the suppliers and partners we choose, and the way we engage with the companies we invest in.

Inclusive ways of working

The pandemic has brought the way we work front and centre, and has shown that diverse ways of working don't hinder productivity. But careful consideration is needed to make sure people feel connected and involved.

The flexible working journey we were on helped us to make the rapid transition needed to respond to the pandemic. Our priority now is listening and working with our people to shape blended ways of working.

Attracting and developing diverse talent

Team effectiveness comes from diverse thinking and experience - high‑performing people at all career stages, and from all backgrounds - and leads to better decisions and fresh ideas. It's equally important that people see diversity in all forms thriving here.

This means being honest about where we are now and where we need to do better - and encouraging conversation about it. We are focused on three areas of underrepresentation where we have more to do: gender, ethnicity and social mobility.

Feel included and valued every day

We want all of our people to feel involved, safe and that they belong. That's when we perform at our best, for our clients and for each other. Every conversation and interaction plays its part in creating this environment.

We focus on building the capability and awareness to drive conversations and active allyship. Creating 'safe spaces' enables colleagues to think about how they influence the environment around them, to share experiences and be curious to learn more about each other.

05