Disappointing news was delivered in the latest POWERful Women’s annual research on female representation at the top of the UK energy sector. As reported in New Energy World, in 2023 the industry is still some way from achieving gender equality in key decision-making roles, with women occupying 29% of all board seats and 16% of executive board roles in the top 80 largest UK energy employers. That’s an increase of just 1% on last year, meaning that UK energy boards remain male-dominated.

It was also shocking to learn from our detailed analysis in association with PwC that some 17 companies (or a fifth of the sector) still have no women on their boards, and three-quarters of companies have no women in executive board roles.  

Trailing other business sectors
Not only is progress on female representation frustratingly slow within our industry, at a time when we desperately need new skills, perspectives and leadership for the energy transition, but the sector is also seriously lagging behind the wider business community. Last year the FTSE 350 achieved its 40% target for women on boards three years early and, as Denise Wilson, CEO of the FTSE Women Leaders Review, pointed out at our launch, the 29% women on boards statistic puts us behind every other sector, including tobacco and mining.

The data on women in the pipeline was more encouraging, showing that women now occupy just under a third of leadership roles below the board and of middle management positions in the UK’s largest energy employers. But, again, it’s not the 40% that POWERful Women wants to see, let alone gender parity.

Ways forward for companies
But while the data clearly remains concerning, I was encouraged and energised by the response to this year’s statistics. At the launch we heard from a panel of industry and business leaders on what needs to be done urgently to turn around the current state of affairs. How do we accelerate progress, to meet the urgent challenges and opportunities of net zero and to build trust with consumers? What would really make a difference?

One of the first things that resonated with me was the suggestion from Dhara Vyas, Deputy Chief Executive at Energy UK, that diversity needs to be taken as seriously as health and safety – with a champion at the board and money invested. BHP serve as a strong example of the difference this makes, where their gender-balanced teams have had better productivity and safety performance than all-male teams.

Making diversity a core business competence, moving the conversation away from just warm words to men taking real action to appoint women into senior roles, is what will make a difference, according to Denise Wilson. Because we know that the opportunity is there.

The good news is that there is no shortage of capable women – the talent pipeline is full to overflowing of people excited by and ready to contribute to the net zero workforce. And with the sector evolving into being more technology-based, with a focus on innovation and ideas and a different skillset from the old manual engineering days, there is no reason why energy can’t be gender-balanced.  

Many companies are already implementing the right policies and practices to get us there. Our work with the 18 organisations on the Energy Leaders Coalition showcases the good practice that increases female representation – from the hiring inclusively programme at BP, to focused and equitable talent development programmes and sponsorship, we have seen significant improvements at the largest energy employers.  

Listening to what women want through employee groups and a culture that encourages honest conversations is key, and linking diversity to performance management throughout the organisation will also help. It’s about leadership, culture and delivery, ensuring that policies are data-driven and that they are working for those they’re designed for, with regular reviews and a firm commitment to staying the course.  

The good news is that there is no shortage of capable women – the talent pipeline is full to overflowing of people excited by and ready to contribute to the net zero workforce.

A changing workplace must work for everyone
There are promising opportunities. COVID-19 has transformed the workplace to offer flexibility that can benefit women’s careers, but we need to be careful that they aren’t disadvantaged by less networking and visibility. Men can also benefit from flexible working and equal parental leave – and it gives me hope that younger people are increasingly demanding this of employers as an important part of creating a better work-life balance.

Jonathan Brearley of Ofgem hit the nail on the head when he said that if the energy sector doesn’t get diversity right, we won’t be able to serve the customers of the next decade. Understanding what they need is vital for the future of the industry and that requires us to look much more like them.

So, let’s focus on the future. We at POWERful Women will continue to report on the leaders and laggards but, just as importantly, we’ll work constructively with the big energy employers who have already shown a commitment to stepping up progress.  We’ll share their examples of the actions that make a difference, focus on supporting the vital female pipeline and continue to encourage faster progress across the board, with our eye firmly on a gender-balanced energy sector.

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.