The increase in women on boards is ten months ahead of the December 2020 target, and the number of females serving on company boards is up from 12.5% less than a decade ago.

As part of the strengthened UK Corporate Governance Code, the Financial Reporting Council (FRC) expects companies to clearly set out how they plan to develop their diversity pipeline with much-improved reporting, including progress towards any measurable targets.

The FRC’s recent review of early adopters reporting against the Code found far too many had limited reporting on diversity, which included how they plan to tackle the lack of women in senior leadership positions. Those companies that did report well had clear plans to meet diversity targets - beyond just gender - and understood the long-term value diversity brings.

Sir Jon Thompson, FRC CEO, said: “Successful and sustainable businesses should reflect the views of shareholders and wider society, with an understanding of the value greater diversity brings at both board level and throughout the business.

“Given the clear benefits greater diversity brings we expect to see improved reporting going forward to meet the Hampton-Alexander targets.”