According to the industry body, in addition to updating discrimination law, the government must promote the "strong business case" for diversity if significant progress is to be made.
The bill aims to simplify legislation surrounding equality in order to make it easier for firms to be compliant.
"Law on its own is simply not enough. [The] government needs to engage employers to take action because it makes business sense," stated CIPD diversity adviser Dianah Worman.
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She added that the Labour administration should publish accessible guidance for firms to follow and launch a national education and awareness campaign concerning diversity.
Meanwhile, the Confederation of British Industry also welcomed the new bill but warned against what it described as "unnecessary legislation" such as mandatory equal pay audits.
