Diversity; why it matters and what we can all do about it 24 July 2015 Article from the Summer Edition 2015 of the Scottish Arbitration Centre Newsletter* LCIA's Director General Jackie van Haersolte-van Hof on diversity; why it matters and what we can all do about it A year ago and before my appointment as Director General of the LCIA, I presented a paper on diversity in arbitration during the ICCA Congress in Miami where I advocated that increasing diversity and inclusion in international arbitration was to be a priority for the coming years. Since presenting that paper, my role as the Director General of the LCIA has only reinforced that view and has further highlighted the important role that institutions play with the help of other stakeholders, in leading the way. The concept of diversity has been widely discussed, and the view that we should have more diversity in international arbitration is one that has been met with general support, not least as there is too small a pool of arbitrators dominating the field. But acknowledging that diversity is important is only the first step. Diversity, in itself, is a diverse concept and is multi-faceted. Gender diversity is a very important part of the discussion, but it is not the only issue. Diversity also includes diversity in terms of age, experience and culture/nationality. Improving gender diversity in international arbitration is, in many ways, an obvious starting point. On any view, whether in light of the 50% of the world population or the some 20% of London law firm partnerships’ population that women comprise, we do not see the same representation in arbitral tribunals. Diversity in age/experience, is another obvious issue to be addressed. Others, such as cultural diversity, are less straightforward and not as clear cut, but clearly important. Diversity in international arbitration is not only important, it is essential to the longevity and legitimacy of the process. It is in the interests of the internal arbitral process that we achieve diversity. To maintain a sustainable pool of arbitrators from which institutions can appoint, we must introduce “fresh blood” on arbitral tribunals. Moreover, diversity enhances the quality of the process – different perspectives in a tribunal leads to better decision making. So, what can we do? First, we need the right tools to achieve increased diversity in arbitration, and transparency is key in identifying concrete action to be taken. A good solution requires knowledge of and insight in the underlying relevant facts. However, obtaining data on the make-up of tribunals and reliable statistics can be difficult. The LCIA has nevertheless sought to extrapolate information regarding LCIA arbitral appointees’ nationality, gender, and first time appointments, and has published such information. In 2013, approximately 12% of all LCIA Court appointments made were women. Of all appointments of women made in 2013, approximately 75% were selected by the LCIA Court (as opposed to being selected by the parties or the parties’ nominees). This information shows that institutions can (and should) take the lead in diversity in instances where the institution itself is selecting the whole tribunal for appointment, as there is an opportunity to mix and match arbitrators. Where institutions organise events, care should be taken to ensure a wide range of speakers. While institutions may be the best placed to take the lead, however, all stakeholders in international arbitration have a role to play in enhancing diversity. Diversity is not a task for institutions only. For example, parties should insist that their representatives provide them with a list of diverse candidates, if they are to select an arbitrator. And the nominees themselves, if they are selecting the third and presiding arbitrator to a tribunal, should consider a range of possible candidates and not just the “usual suspects”. We are seeing a multitude of events and organisations in London putting this issue at the forefront of discussions on international arbitration. This is a good development. The LCIA as an institution has and will continue contributing to the broader discussion, while also taking active steps further to improve diversity in concrete cases. We all have a responsibility in respect of diversity, and an interest to gain from improving diversity in international arbitration. However, change will not happen without decisive action from all players. *This article has been reproduced with the kind permission of the Scottish Arbitration Centre. To view the full newsletter please click here