Why inclusion belongs in the boardroom

June is Pride Month – a global celebration of LGBTQIA+ diversity, visibility and resilience. It is a timely reminder to reflect on the progress made and the work still required to achieve genuine inclusion.

For directors, it is also an opportunity to consider the role boards play in championing inclusion – not just in word, but in governance, leadership and influence.

Diversity and inclusion start in the boardroom. At the Institute of Directors, we recently launched the Rainbow Directors’ Network Shared Interest Group, a space for LGBTQIA+ directors and allies to connect, share insights and lead with visibility. The network supports building a stronger pipeline of board talent in Aotearoa New Zealand and reflecting the reality that inclusive governance is simply better governance.

Despite growing awareness, LGBTQIA+ people remain significantly underrepresented in boardrooms globally. According to Out Leadership’s 2024 LGBTQ+ Board Diversity Report, only 45 out of 5,449 Fortune 500 board seats are held by LGBTQ+ individuals (less than 1%), despite 31% of companies including LGBTQIA+ in their board diversity policies.

In New Zealand, all NZX 50 companies have a diversity policy. However, it is unclear to what extent these policies go beyond gender, although the NZX Corporate Governance Code encourages issuers to consider broader dimensions beyond gender, such as sexual orientation, cultural background and age.

The report also highlights that:

• • 86% of LGBTQIA+ professionals say seeing openly LGBTQIA+ leaders makes a company more attractive to work for.
  • 52% of LGBTQIA+ employees say they spend around 30% of their time at work covering their identity, which adversely impacts on productivity.

Further research from 2023 showed 30% of Gen Z consumers would reject a brand that fails to demonstrate credible DEI (diversity equity and inclusion) commitments, underscoring the growing expectations of the next generation of employees and customers.

At the same time, the global LGBTQIA+ community represents an estimated $3.7 trillion in annual purchasing power, making inclusion not just a social imperative but a market one. The gap between policy and lived experience is clear: inclusion must move beyond statements and be embedded in governance practice.

Inclusion isn’t just the right thing to do; it’s a strategic advantage. Gen Z, our future leaders and workforce, are the most openly LGBTQIA+ generation yet. Their expectations around inclusion, leadership and authenticity are reshaping how organisations attract and retain talent.

LGBTQIA+ inclusion is increasingly recognised not only as a cultural issue but as a material governance concern. And yet, many sustainability frameworks don’t currently require reporting on LGBTQIA+ outcomes, meaning progress can be hard to measure and easy to overlook.

Boards play a critical role in changing that by asking better questions, demanding better data and modelling inclusive leadership. What gets reported gets attention. What gets measured gets managed.

Practical steps for boards

• • Adopt inclusive diversity policies: Ensure your board’s diversity statement explicitly includes sexual orientation and gender identity. Without this, LGBTQIA+ representation can be overlooked.
  • Broaden board search criteria: Engage with organisations like the Rainbow Directors’ Network and actively consider LGBTQIA+ talent in board succession planning. Inclusion doesn’t happen passively – it needs to be built into process.
  • Foster psychologically safe board cultures: Representation is only part of the equation. Ensure your boardroom culture supports open expression and values the full diversity of thought and identity at the table.
  • Champion inclusion beyond the board: Boards set the tone for organisational strategy and culture. Include LGBTQIA+ perspectives in your oversight of employee wellbeing, risk, recruitment and public positioning.

Pride Month reminds us of the extraordinary contributions of LGBTQIA+ leaders – from Georgina Beyer’s pioneering parliamentary role as the world’s first transgender MP, to Louisa Wall’s leadership in advancing marriage equality.

Boards must carry that legacy forward, not only by celebrating it, but by creating the conditions for others to follow.

Inclusion isn’t a seasonal statement or side project. It’s a strategic imperative and it starts at the top.

Join the Rainbow Directors’ Network Shared Interest Group