Many companies in the energy sector are still not grasping the fact that there is a business case for diversity, according to Sarah Beattie, who helps to co-ordinate the Untapped Reserves DE&I survey, a joint initiative between the Boston Consulting Group and the World Petroleum Council.
The survey measures diversity in the industry according to a number of different criteria. The last version, 2.0, released at Houston’s World Petroleum Congress in 2021, found that there was still a long way to go to address significant underrepresentation of women in the oil and gas sector.
It found that only 22% of oil and gas workers are female—the same level as when the survey was conducted in 2017—and only 12% are at executive level.
“There are so many correlations and studies done between diversity and innovation,” says Beattie. “And with net zero goals in place, innovation has never been more important—we’re a sector that needs to completely reimagine how it works. So it really is urgent that we address these diversity issues.”
And engaging with this issue doesn’t just help with innovative thinking, it’s a business imperative, Beattie adds.
“Diversity is not just a nice to have but a business imperative.”
Improving against metrics
The 2021 survey outlined a number of key criteria that firms looking to improve diversity needed to address.
These included: the availability of flexible working options, paid parental leave policies, improved recruitment policies and the availability of gender-appropriate facilities.
To achieve success on these issues there are three essential elements to a successful diversity, equity and inclusion (DE&I) strategy. These are: policies to set targets and measure improvement against these targets, a clear and visible commitment from senior leadership and the establishment of a strategic operating model that enables organisations to attract a more diverse talent pool.
Companies in some regions are doing better against the metrics than others. Europe saw the greatest improvement in gender equity between 2017 and 2021, with women’s representation rising from 24% to 33%, helped by increased government intervention in countries such as Germany and the Netherlands.
Global companies tend to set more DE&I goals and policies—and be more active in pursuing these objectives—than regional ones, and as a result saw women’s representation increase very slightly, from 24% to 25%, between 2017 and 2021.
Getting to the C-suite
One of the major issues is the decline in women’s representation between middle-level and senior-level positions, which remained as pronounced in 2021 as it was in 2017, and is consistent across all regions.
The 2021 survey found that 50% of women feel that sponsorship is an important pathway to promotion and senior-level advancement, but lack of mentoring and sponsorship were both cited by a third of women surveyed as obstacles to promotion.
A third survey is currently underway, with results to be published and discussed at the 24th World Petroleum Congress taking place in Calgary later this year.
“We saw a sharp uptake in companies putting in place programs and policies between 2017 and 2021, so we want to measure how effective these policies have been and explore the implications of a broader approach to securing diversity,” says Beattie.
The third survey, known as Untapped Reserves 3.0, has been expanded to include power, utilities and new energy companies as well as to cover other diversity aspects such as ethnicity, disability and economic background. It will also take into account the effect of the Covid-19 pandemic.
“On the one hand with Covid-19 a lot of the challenges it created, such as home schooling, fell disproportionately on female shoulders, but on the other hand one of the outcomes has been hybrid working, which has been helpful to women. So far we’re getting mixed messages on the impact of the pandemic.”
Only agriculture and construction sectors have a lower female employment rate than the oil and gas sector. Does the industry have a fundamental image problem?
“The industry is under a lot of scrutiny at the moment. The sector’s image does need to improve if it is going to attract a vibrant, diverse workforce and we are hopeful that the report from Untapped Reserves 3.0 will offer evidence that the sector is becoming more inclusive,” Beattie concludes.
You are invited to complete the survey here: https://www.113.vovici.net/se/13B2588B407B1D52
Comments