Even though energy leaders around the world have established ambitious net zero targets for 2030 and beyond, the energy sector remains the source of around three-quarters of greenhouse gas emissions today, according to the International Energy Agency.
For us to achieve these emissions goals, we will need to rely on ingenuity, progressive thinking, bold decision-making and fresh perspectives – all of which come from diverse teams. So, what are we doing to attract, retain and develop a more diverse and inclusive workforce?
First, why is diversity and inclusion so important to improving how we conduct business, and ultimately tackle major challenges like climate change? In a recent study by Blackrock examining the correlation between a company’s financial performance and their workforce gender diversity, findings indicated that companies with more gender-balanced teams outperformed their least-balanced peers by as much as 2 percentage points annually.
The report also cites that gender diversity tends to deteriorate with seniority and there may be a persistent glass ceiling, making it difficult for women to reach the very top ranks. With this in mind, we need to take a bolder approach to diversity and inclusion than what we are seeing today.
As an industry we must hold ourselves to greater account. That means committing to measurable goals, being transparent about our progress and accepting that we’re not always going to get it right – but being open enough to learn, change and get better along the way.
According to The Pipeline Women Count 2023 report, 96% of FTSE 350 CEOs in 2019 were men and 4% were women. The percentage of women has nearly doubled in the intervening four years, with 9% being the latest count, but we still have a lot of ground to cover.
© Supplied by Wood GroupPOWERful Women (PfW), a professional organisation created to bring organisations together in the UK to move the dial on how we can collectively create a gender-balanced, diverse and inclusive UK energy sector, is one such industry partner keeping Wood and other leading energy companies accountable.
Each participating company in the PfW’s Energy Leaders’ Coalition (ELC) publishes its internal gender diversity targets and to what extent they have been achieved against PfW’s target of at least 40% of middle management and leadership roles in the UK energy sector to be held by women by 2030.
According to PfW’s 2023 State of the Nation address, 74% of top UK energy companies have no women in executive board seats. Additionally, only 31% of leadership roles and 32% of middle management roles are held by women in the UK energy sector.
Constructive disruption will support us as we begin 2024, and as we continue to work closely with our leaders to ensure diversity and inclusion action plans tie into wider business strategies, it is inevitable that the dial will start to shift.
As leaders in the global energy sector, it is imperative that we establish the necessary structures within our organisations to welcome highly skilled candidates from all backgrounds.
By initiating a lasting change within our own organisations, the UK energy sector can be a catalyst to a broader global movement across other regions and industries.
Together we can impact widespread workplace diversity and inclusion, and as a result, further progress in our path to net zero. In 2024, this is a must have, not a nice to have.
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