In recent years, the financial services industry has found itself under increasing scrutiny regarding diversity, equity, and inclusion (DE&I). Stakeholders, from investors to clients and employees, are demanding more from businesses in terms of representation, fairness, and inclusive practices. While DE&I initiatives often fall under the purview of HR or dedicated diversity officers, the role of the Chief Financial Officer (CFO) is becoming increasingly central to driving these strategies forward. CFOs are uniquely positioned to embed DE&I into the financial and strategic frameworks of their organisations, ensuring these efforts are not only impactful but also sustainable.

Why DE&I Matters in Financial Services

The financial services sector is one of the most globally connected industries, and yet it has historically struggled with diversity, particularly at senior leadership levels. A lack of diverse voices can lead to groupthink, reduced innovation, and the alienation of key customer demographics. On the other hand, organisations that prioritise DE&I often report improved financial performance, stronger employee engagement and retention, and enhanced reputation and client trust. Diverse teams outperform homogenous ones, especially in decision-making and problem-solving. Inclusive workplaces foster higher employee satisfaction and loyalty. For an industry built on relationships, demonstrating a commitment to equity and inclusion can set firms apart in competitive markets.

The CFO as a DE&I Champion

The CFO’s role is evolving from being a steward of financial integrity to a strategic leader who influences culture and long-term value creation. DE&I initiatives require more than words; they need investment. CFOs must ensure budgets include allocations for DE&I programs such as unconscious bias training, mentorship schemes, and employee resource groups. They should also support technology investments that reduce hiring biases, such as AI-driven recruitment tools, and evaluate the return on investment (ROI) of these initiatives to ensure continuous improvement.

Setting and Tracking DE&I Metrics

Data is at the heart of any financial strategy, and it should be at the core of DE&I efforts as well. CFOs can collaborate with HR to develop robust metrics, such as diversity in hiring, promotions, and pay equity. Including DE&I metrics in financial reporting and annual reviews promotes transparency and accountability. CFOs can also use financial analysis tools to assess whether DE&I efforts are leading to measurable business outcomes, such as improved employee retention or client acquisition.

Embedding DE&I in ESG Frameworks

Environmental, Social, and Governance (ESG) criteria are becoming increasingly important to investors, and DE&I is a critical component of the “Social” pillar. CFOs can integrate DE&I goals into the company’s broader ESG strategy and align these efforts with regulatory requirements and reporting standards, such as the EU’s Corporate Sustainability Reporting Directive (CSRD). Highlighting the organisation’s DE&I progress in conversations with investors underscores its long-term value creation.

Partnering Across the Business

CFOs often have a bird’s-eye view of the organisation, which allows them to work with business unit leaders to ensure DE&I principles are embedded in every department’s strategy. They can collaborate with procurement teams to promote supplier diversity, ensuring the organization’s supply chain reflects its commitment to equity. Additionally, they can engage with marketing and sales teams to ensure that DE&I efforts resonate externally and authentically with clients.

Challenges and Opportunities

Leading on DE&I is not without challenges. CFOs may encounter resistance to change, particularly if there’s a perception that DE&I initiatives detract from immediate financial goals. However, the opportunity to create a more resilient and future-ready organisation outweighs these hurdles. CFOs must act as both financial strategists and cultural ambassadors, demonstrating that DE&I is not a cost centre but a value driver.

Looking Ahead

As financial services firms navigate an increasingly complex and interconnected world, DE&I is no longer a “nice-to-have” — it is a business imperative. By leveraging their unique position at the intersection of strategy, finance, and governance, CFOs have the power to lead transformative change. The path forward requires bold action, transparency, and a willingness to invest in the future. For CFOs, the opportunity to champion DE&I is not just about enhancing the bottom line; it is about building organizations that reflect and serve the diverse world in which they operate.

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The CFO's Impact on DE&I in Financial Services