Inclusion & Diversity Study 2021 - June 2021 - Energy Workforce & Technology Council

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Inclusion & Diversity Study 2021 - June 2021 - Energy Workforce & Technology Council
2021
Inclusion
& Diversity
Study
June 2021
Inclusion & Diversity Study 2021 - June 2021 - Energy Workforce & Technology Council
Updated           OPTION 2

Inclusion & Diversity
in the Energy Technology and Services Sector
Study Overview

The 2018 Study:                       2021 Study:
• Established a baseline on               Follow-up on progress on gender diversity
  gender diversity
• Led to actions for progress:            Build a baseline on ethnic minority and racial diversity
  ⎼ Diversity Toolkit                     in the sector
  ⎼ I&D Business Champion Program
                                          Identify key gaps to close for women and ethnic
• Set a goal of reaching 20% women        minorities
  by 2020 in the sector workforce
Inclusion & Diversity Study 2021 - June 2021 - Energy Workforce & Technology Council
DIVERSITY
MATTERS
MORE THAN EVER
  Inclusion & Diversity is imperative
  for the energy technology and
  services sector as it reinvents
  itself for a low-carbon future
Inclusion & Diversity Study 2021 - June 2021 - Energy Workforce & Technology Council
Improving Inclusion & Diversity metrics will play a
more central role in the sector’s performance

       INNOVATION
       The sector will increasingly need to innovate to remain relevant
       within the expansion of new energy technology and services
       • Companies with inclusive cultures and policies report an
          increase of over 50% in creativity, innovation, and openness1

       ESG METRICS
       Investors are increasingly looking at companies to have actionable
       and measurable plans for improving diversity, equity and inclusion2
       • I&D has moved beyond being an “S” only issue and is becoming
          more intertwined with E and G metrics as well, weighing heavily
          on overall ESG performance

1: Why diversity and inclusion matter, Catalyst.org, June 2020
2: Blackrock 2021 Letter to CEOs
Inclusion & Diversity Study 2021 - June 2021 - Energy Workforce & Technology Council
2020 was a challenging year for women and
minorities in the workforce

The pandemic and associated
drop in oil prices resulted in more
than 100k jobs lost in the sector.      Women have seen their
Energy Workforce & Technology Council   earnings decline almost two
                                        thirds more sharply than
                                        men, dropping by 16.5% on
Women and minorities,                   average since the pandemic
especially those in households          began, compared with a drop
with children, dropped out of the       of 10.1% for men
workforce at higher rates than          Accenture Research / W20
men and whites overall.
Fewer women and minorities are
returning to the workforce.
Federal Reserve Bank of Dallas
Inclusion & Diversity Study 2021 - June 2021 - Energy Workforce & Technology Council
However, women have made progress in
    representation within the sector since 2018
2021 Workforce Composition
                                                                                                                                                  Change from 2018
                                              Men                                                                     Women
  Overall US Workforce1                                                   53%                                                      47%            No change

                                                                                                                                                     Up from
                                                                                             81%                                            19%
  Oil & Gas US         Workforce1
                                                                                                                                                     15%

                                                                                                                                                     Up from
  Council US        Workforce2                                                               81%                                            19%      16%
    Source:
    1 -Overall and Oil and Gas Workforce: Department of Labor Statistics, Oil & Gas related industries (oil and gas              Council
    extraction, petroleum refining, construction, and mining and oil and gas field machinery manufacturing)                   2020 Target
    2 -Council Workforce: 2021 I&D Study prepared for the Council by Accenture
Women are more equally distributed between
business support and technical roles…

Women in the sector by Job Discipline

                                Total Business                                                                        Total Technical/
                                Support Functions                                                                 Operating Functions

                                                                                                                             12%
                                      34%
Up from                                                                                                                                  Up from
  31%                                                                 52%                       48%                                         8%
in 2018                                                                                                                                  in 2018
                                                                                 2021                                         88%
                                       66%

                                                 Business Support Functions   Technical / Operational Functions     Women       Men

Source: 2021 I&D Study prepared for the Council by Accenture
…but challenges faced in promotion
and leadership roles remain relevant
80% of respondents cite women represent…

           Emerging & Senior Leaders                                  Top Leaders
      (first-line and middle/upper management)                 (highest ranking executives)

Business
Support                           ≤ 31%                                  ≤ 18%
Functions

                                                                                              Only leadership
Technical/
Operating                         ≤ 11%                                   ≤ 9%                group to improve
Functions                                                                                     from 2018, up
                                                                                              from 7%

                                   2021                                   2021
Source: 2021 I&D Study prepared for the Council by Accenture
Ethnic minority representation within the sector lags
    the overall US workforce
Workforce Composition
                                                  Black or African American                                          Asian                               Hispanic or Latino   Total

    Overall US Workforce1                                               12%                                        6%                                  18%                    36%

    Oil & Gas US Workforce1                                     8%                              6%                                          14%                               28%

    Council US Workforce2                                5%                     5%                                          15%                                               25%
    Source:
    1 -Overall and Oil and Gas Workforce: Department of Labor Statistics, Oil & Gas related industries (oil and gas extraction, petroleum refining,
    construction, and mining and oil and gas field machinery manufacturing)
    2 - Council Workforce: 2021 I&D Study prepared for the Council by Accenture. Numbers are benchmarks as this is the first time this data is being
    collected.
…but face similar challenges in representation
when it comes to management and top leader roles
80% of respondents cite that ethnic minorities represent…

            Emerging & Senior Leaders                                                   Top Leaders
      (first-line and middle/upper management)                                   (highest ranking executives)

Business
Support                             ≤ 23%                                                  ≤ 22%
Functions

Technical/
Operating                           ≤ 25%                                                   ≤ 9%
Functions

Source: 2021 I&D Study prepared for the Council by Accenture.
Numbers are benchmarks as this is the first time this data is being collected.
Pushes for diversity still need to
come from the top of the house
Company-wide strategies and initiatives (e.g., employee
resource groups, mentorship programs, and leadership
role models) help build an I&D mindset and drive change.

      Recruitment
      Expand talent searches to ensure diverse recruitment

      Retention
      Keep women and minorities in the workplace

      Advancement
      Mentorship and leadership role-modeling matters
RECRUITMENT                      RETENTION                  ADVANCEMENT

Representation starts with finding and tapping
into diverse talent pools for candidates
2021 Talent In-flow
                              Women                                             Ethnic Minorities   Women still account
Overall                        15%                                                  36%             for less than 20% of
                                  16% in 2018
                                                                                                    entry-level recruits
                                                                                                    within the sector,
                                                                                                    while they account for
Entry Level                    15%                                               17%                more than 36% of
                                  15% in 2018                                                       STEM degree
                                                                                                    undergraduates in the
Experienced
                                                                                                    US1
                               15%                                                     41%
Hires
                                  18% in 2018

Source: 2021 I&D Study prepared for the Council by Accenture
1: Women in Science, Technology, Engineering & Mathematics 2020, Catalyst.org
RECRUITMENT                       RETENTION                   ADVANCEMENT

Flexibility and support enable more diverse talent

Flexible work programs                                                                           Childcare back-up options
Respondents that have flexible work programs1                                                    Respondents that have back-up childcare options available
(% of total respondents)                                                                         (% of total respondents)

  42% in                                                                                           0% in           4%
   2018                                                           Has flexible                     2018                             Available
                               32%                                work programs
                                                                                                                                    Not available
                                                                  Does not have
                                                                  a flexible work
                                                                  program                                         96%
                                68%

                              2021                                                                               2021

Source: 2021 I&D Study prepared for the Council by Accenture
1: This excludes any flexible work programs that have been implemented as a result of Covid-19
RECRUITMENT                      RETENTION                   ADVANCEMENT

Providing paid leave for primary and secondary
caregivers increases flexibility for the workforce
Weeks of fully paid leave for caregivers
(% of total respondents)                                                                 Maximum number        Median number of
                                                                                         of fully paid weeks    fully paid weeks

   Primary
   Caregivers                           44%
                                                                   32%
                                                                                                18                    8
                                                                               24%

   Secondary
   Caregivers                           52%
                                                                   40%
                                                                                                16                  1.5
                                                                                8%
                                     0 weeks                      8 weeks    More than
                                                                  or fewer    8 weeks

Source: 2021 I&D Study prepared for the Council by Accenture
RECRUITMENT                     RETENTION                 ADVANCEMENT

Employee Resource Groups can be leveraged as valuable
partners to determine what a diverse workforce requires
Less than 50% of respondents have Employee
Resource Groups (ERG) 1, and likely don’t
utilize them to their fullest potential
Ways to better utilize Employee Resource Groups2:
• Compensate ERG leaders for their work
• Fund ERG conference attendance
• Leverage ERGs for internal leadership pipelines
• Show visible support from CEOs and leaders at ERG events
• Provide C-suite executive sponsorship for each ERG
• Actively seek employee experience input from ERGs

Source:
1: 2021 I&D Study prepared for the Council by Accenture
2: Harvard Business Review, What Black Employee Resource Groups Need Right Now
RECRUITMENT                       RETENTION                    ADVANCEMENT

Representation at the top of the house helps
support and signal gender and ethnic minority
diversity for the organization
                                                                               Availability of Programs to Support Diversity
                                                                               (% of total respondents)

                                                                               C-suite Gender
                                                                               Diversity Strategy               40%            60%

Diversity efforts at the CEO level have been
less successful, with women holding only
7 percent and ethnically diverse executives
only 9 percent of CEO positions among                                          C-suite Ethnic Minority
Fortune 500 companies.”                                                        Diversity Strategy               40%            60%

                                                                                                          Yes    No

Source: 2021 I&D Study prepared for the Council by Accenture
“The Sorry State of C-suite Diversity”, Cooley PubCo, May 2020
RECRUITMENT                      RETENTION                   ADVANCEMENT

Creating formal mentorship programs plays an
important role in career advancement
Availability of formal mentorship programs
(% of total respondents)                                                     Of the respondents with formal mentorship programs:

                                     40%
                                                                              75%                      50%                     62%

                                     60%

                                                                                 Have at least            Have at least        At least 15% of their
                                     2021                                       20% women in               30% ethnic           top executive are
              Has formal mentorship programs                                    their workforce           minorities in         women or ethnic
              Does not have formal mentorship programs                                                   their workforce             minorities

Source: 2021 I&D Study prepared for the Council by Accenture
Ambitions going forward
Largest areas of focus since 2018                              Largest focus areas for the
for the advancement of diverse                                 future, according to
talent that respondents cite:                                  respondents
• Education on unconscious bias /                              • Develop pipeline of diverse
  inclusion training that emphasizes                             talent for leadership roles
  and role-models inclusive behavior                           • Offer competitive
• Creating allies for women in                                   compensation
  leadership                                                   • Conduct diversity, equity and
• Partnerships with employee                                     inclusion reviews
  resource groups                                              • Expand focus to include
• Focus on gender diversity in                                   ethnic diversity
  technical and STEM roles

Source: 2021 I&D Study prepared for the Council by Accenture
How the Council can help
                                                                                           In 2021, the Council can push
                                                                                           progress forward by
                                                                                           • Offering action-oriented inclusion
                                                               The 2021 iteration of         training to Council members
                                                               study proves the value of   • Establishing best practices for
                                                               tracking metrics to           increasing ethnic minority diversity –
                                                               evaluate what works and       how to best utilize ERGs, broker
                                                               drives progress.              partnerships to increase recruitment
                                                                                             and pipeline diversity, provide
                                                                                             sponsorship program models, etc.
                                                                                           • Creating opportunities and
                                                                                             channels for Council members
                                                                                             to cross-share diversity, equity and
                                                                                             inclusion strategies

Source: 2021 I&D Study prepared for the Council by Accenture
About the Research
Participating companies from the Energy Workforce &
Technology Council directly provided workforce data as of
January 2021 for the survey.

25 Total Companies Participating
14 1000 Total            12 Reported Non-US
Employee Headcount     Employee Headcount        Employee Headcount

249,175 Combined Employee Headcount          1

63,557                 185,618
US Headcount           Rest of World Headcount

13,392 Recruits
2,345                  11,047
Entry level recruits   Experienced hires
APPENDIX
Survey Findings: Workforce Composition
                                                                     Global               USA         Ethnic Minority – US1

Overall                               Total 2021               18%            85%   19%         81%                      27%
                                      Total 2018               16%            83%   16%         84%

Companies                             Total 2021               18%            85%   19%         80%                      23%
> 1000 employees
                                      Total 2018               16%            81%   16%         85%

Companies                             Total 2021               14%            89%   14%         88%                      43%
< 1000 employees
                                      Total 2018               21%            85%   22%         82%

Source: 2021 I&D Study prepared for the Council by Accenture
Note: Global refers to US and Rest of World workforce
1: Ethnic minority includes 2% for other ethnicities
Survey Findings: Recruitment
                                                                       Global               USA         Ethnic Minority - US

Overall                                Total 2021                18%            77%   15%         80%                      36%
                                       Total 2018                17%            83%   16%         84%

Companies                              Total 2021                16%            75%   16%         81%                      39%
> 1000 employees
                                       Total 2018                19%            81%   15%         85%

Companies                              Total 20211                8%            79%   8%          79%                          9%
< 1000 employees
                                       Total 2018                15%            85%   18%         82%

Source: 2021 I&D Study prepared for the Council by Accenture
Note: Global refers to US and Rest of World workforce
1: Rest of World data for 2021 was not provided by respondents
Survey Findings: Women in Leadership
Ranking of Company Responses – High to Low                                                                                                                                                                                                                                               80th Percentile

                             % Women Emerging & Senior Leaders                                                                                                                          % Women Top Leaders

   Business
    Support                                                                                                                                                                        75
                                                                                                                                                                                        60
   Functions
                            40 38 36
                                     33 31
                                           28 26 23
                                                    21                                                                                                                                       20 18 16
                                                                                        14 13 13                                                                                                      15 14 14
                                                                                                                                                                                                               10
                                                                                                      4    4    3    3       2        2        1        1       1    0    0   0                                                      2       1       1       0       0       0       0    0   0   0   0   0   0
                            1    2    3    4       5        6       7       8       9   10 11 12 13 14 15 16 17 18 19 20 21 22 23 24                                               1    2    3   4   5   6   7       8       9       10 11 12 13 14 15 16 17 18 19 20 21 22

  Technical /
  Operational
   Functions
                                                                                                                                                                                   33
                            17   16   15                                                                                                                                                17
                                           11          10                                                                                                                                    9
                                                                6       5       5       2   1    1    0    0    0        0       0        0        0        0       0    0    0                  0   0   0       0       0       0       0       0       0       0       0       0       0    0   0   0   0   0
                            1    2    3        4       5        6       7       8       9   10   11   12   13   14   15          16       17       18       19      20   21   22   1    2    3   4   5   6       7       8       9       10 11           12 13 14 15                     16 17 18 19      20 21

Source: 2021 I&D Study prepared for the Council by Accenture
Survey Findings: Ethnic Minorities in Leadership
Ranking of Company Responses – High to Low                                                                                                                                                          80th Percentile

                         % Ethnic Minority Emerging & Senior Leaders                                                                 % Ethnic Minority Top Leaders

   Business
    Support
   Functions
                            39
                                 29   27                                                                                              29 25
                                           23   21   21                                                                                     22 22 20
                                                          18                                                                                               15 15
                                                               7    6    5    4    3    2                                                                          3   2
                                                                                             1    1    1    1    0    0    0    0                                          1    0   0   0   0   0   0   0   0   0   0
                            1    2    3    4    5    6    7    8    9    10   11   12   13   14   15   16   17   18   19   20   21     1   2   3   4   5   6   7   8   9   10   11 12 13 14     15 16 17 18     19 20

  Technical /
  Operational                                                                                                                         67
   Functions
                            30   27   26   25   25   25   22   20
                                                                    13   9                                                                 9
                                                                              6    2    1    1    0    0    0    0    0    0    0              0   0   0   0   0   0   0   0    0   0   0   0   0   0   0   0   0   0
                            1    2    3    4    5    6    7    8    9    10   11   12   13   14   15   16   17   18   19   20   21     1   2   3   4   5   6   7   8   9   10   11 12 13 14     15 16 17 18     19 20

Source: 2021 I&D Study prepared for the Council by Accenture
About
Energy Workforce & Technology Council                        Accenture
The Energy Workforce & Technology Council is the national    Accenture is a leading global professional services company,
trade association for the energy technology and services     providing a broad range of services and solutions to deliver on
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than 600 energy technology and services companies.           their stakeholders. With approximately 537,000 people serving
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