UK Automotive Diversity & Inclusion Charter launched

The founding signatories represent a fifth of the sector’s manufacturing workforce as well as organisations including Unite the Union and the Society of Motor Manufacturers and Traders (SMMT).

Together, the sixteen companies are pledging a ‘collective, public commitment’ to create a diverse, equitable and inclusive (DE&I) workforce that is reflective of wider society.

The initiative will support ongoing efforts to retain and attract top talent as the industry undertakes its biggest technological transformation in over 100 years amid critical skills shortages.

By signing the Charter, companies publicly recognise that creating a diverse and inclusive workforce is not only ethically responsible but good for business, with benefits including improved employee satisfaction and productivity, fostering greater creativity from diverse perspectives, and making the sector more attractive to top talent.

Signatories commit to take action in eight key areas with the aim of accelerating progress across all aspects of DE&I within their companies.

Pledges include appointing a board-level DE&I champion; embedding DE&I policies into company values; improving recruitment practices to encourage diversity of applicants; supporting career development for every employee; creating more flexible working environments; and reporting diversity data and progress to the Automotive Council annually.

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The Charter and pledges were established in response to recommendations in the Automotive Council report Driving diversity, equity and inclusion in the UK automotive industry, which focuses on gender balance as a first step.

While the report acknowledges that many companies have DE&I programmes and initiatives in place, it shows the overall automotive manufacturing sector lags behind other UK industries, with women representing 12 per cent of the workforce compared with 47 per cent in the UK workforce as a whole.

The report also identifies diversity as a business-critical issue, citing 2019 analysis from Mckinsey which found that companies in the top quartile for gender diversity on executive teams were 25 per cent more likely to experience above average profitability than those in the fourth quartile. In the case of ethnic and cultural diversity, this rose to 36 per cent.

The Charter follows initiatives already in place across sectors including aviation and aerospace, defence, finance, rail and retail. It will provide a platform for the industry, via the Automotive Council, to share best practice, promote positive initiatives and report on progress.

Mike Hawes, SMMT chief executive and chair of the Automotive Council UK Competitiveness and Business Environment Group said: “This Charter is a pivotal moment for the automotive industry – a collective pledge to drive positive change, drive out inequality, and demonstrate progress.

“UK Automotive is undergoing an immense transformation and our future success depends on attracting the best and brightest talent, irrespective of backgrounds, races, genders, cultures or abilities. A rich diversity of skills, perspectives and experience can give us a competitive advantage and I encourage the sector to support this important ambition.”

The UK Automotive Diversity & Inclusion Charter was launched at the SMMT Annual Dinner in London this week.

The sixteen signatories are the Advanced Propulsion Centre; Aurrigo; Bentley Motors; BMW Group; Cummins; Honda Motor Europe; Lotus; McLaren; Nissan UK; Robert Bosch; The SMMT; Stellantis; TMD Friction UK Ltd; Toyota; Unite the Union; and Volkswagen Group UK.