Stay the course on board diversity – even if the waters get choppy

Progress in Singapore and across the region shows meaningful change is underway. 

Board diversity has long been recognised as a hallmark of good governance.

However, following the executive order dismantling federal diversity, equity, and inclusion (DEI) programmes in the United States earlier this year, many corporations have started rebranding or scaling down their diversity efforts in response to evolving expectations. This shift has left organisations worldwide wondering whether they, too, should scale back.

A YouGov poll showed that almost half of Americans were in favour of ending DEI programmes in schools and government. However, this narrative does not translate the same way in Asia-Pacific (APAC).

In APAC, board models are expected to embrace topics such as DEI as a future-proofing measure amidst a disruptive geopolitical landscape, according to a report by EY in March 2025.

It is clear that despite political pushback, diversity remains a strategic asset tied to board effectiveness, good governance, and resilience in the APAC region. The conversation is merely shifting from box-ticking to achieving something as meaningful as cognitive diversity within organisations – resulting in richer discussions, reduced group think, and greater problem solving capabilities.

Momentum is building closer to home
The 2025 Board Diversity Index, developed by WTW and the Singapore Institute of Directors, shows us that DEI advancements in Singapore boards is more than skin deep, and has been quietly picking up speed.

Unlike narrow definitions of diversity based solely on demographics, the report tracks eight dimensions – including gender, independence, tenure, domain knowledge, and industry expertise – that collectively build cognitive diversity, or diversity of thought.

It found that boards have strengthened diversity over the past five years across key areas such as gender representation, board independence, and director tenure. Notably, diversity in domain knowledge and industry expertise has risen sharply, reflecting organisations’ growing need for broader perspectives in an increasingly complex, artificial intelligence-driven economy.

Meanwhile, a study by the Council for Board Diversity shows that women’s participation on boards at Singapore’s top 100 listed companies has tripled in the last decade, whilst the number of all-male boards has more than halved. Boards are also becoming more open to board renewal, with 66% of new directors appointed to Singapore’s top 100 listed companies in 2023 being first-timers.

Local regulators, such as the Singapore Exchange, are supporting these efforts by mandating board diversity disclosures and introducing a nine-year limit on independent director tenure, encouraging board refreshment. Together, these efforts are transforming boardrooms into more representative, dynamic and forward-looking spaces that are better equipped to navigate challenges through the power of diverse perspectives.

Turning diversity into stronger governance
Of course, progress like this is encouraging, but sustaining it takes deliberate effort. Without reinforcement, the benefits of diversity can easily fade.

Boards that want to keep pace can’t leave diversity to chance. The good news is that there are tangible steps boards can take to strengthen diversity meaningfully.

For starters, boards need to conduct diversity audits, supported by modern governance tools, to gain a clearer view of their composition across multiple dimensions. Regularly benchmarking board makeup against evolving stakeholder expectations ensures that gaps are identified early and progress can be tracked over time.

After conducting these audits and benchmarking, boards can continue to play a critical role in shaping the culture and strategic direction of their organisations. They can take clear, actionable steps to improve representation and inclusion in a way that strengthens governance and risk oversight.

One key strategy is to expand the nominations process beyond traditional networks. By intentionally reaching beyond established circles, boards can identify candidates with diverse backgrounds, experiences and viewpoints, which enhances their collective ability to anticipate and navigate complex risks.

Next, developing diverse nomination slates for each board opening ensures that a broader range of perspectives is consistently brought to the table, which can significantly improve decision-making in today’s rapidly changing and uncertain environment.

In parallel, it is essential for boards to invest in ongoing director education, focusing on areas like unconscious bias and inclusive leadership. This not only deepens board members’ understanding of how diversity influences risk perception and response but also reinforces a culture of thoughtful, inclusive governance.

Some boards are also revisiting practices like reverse mentoring, where senior leaders are paired with junior employees from underrepresented groups. This practice helps leaders understand different perspectives and address blindspots.

For example, leaders may realise that recruitment practices unintentionally favour varying profiles, or that communication styles in the boardroom inadvertently silence newer voices. When used thoughtfully, reverse mentoring strengthens cultural awareness at the top and enhances the board’s ability to tap into diverse viewpoints.

Of course, no single initiative is a silver bullet. Sustained progress requires embedding these practices into broader governance processes and fostering a boardroom culture where different perspectives are heard, valued, and acted upon.

Staying the course through uncertain times
Whilst political headwinds may tempt some organisations to deprioritise diversity initiatives, boards that treat diversity as a strategic imperative rather than a compliance exercise will be better equipped to navigate complexity and mitigate risks.

Progress in Singapore and across the region shows meaningful change is underway. Organisations that stay the course and don’t fall prey to the limitations of a non-diversified board will be best positioned to lead in the years ahead.