Unleashing The Power Of Women To Transform Male-dominated Industries
Today, a number of well-established legacy industries are facing growing pressure to innovate and transform to remain competitive in the global economy. Increasing gender diversity in these traditionally male-dominated industries can be an effective—but often overlooked or neglected—means to address escalating challenges as well as to facilitate and accelerate positive change.
Recognizing this missed opportunity and a major knowledge gap as to how women are advancing organizational and industrial transformation, FP Analytics conducted a pioneering global study of fourteen legacy industries, which are among the most male-dominated and have wide-reaching environmental, health, and social impacts, and produced the Women as Levers of Change Report. Building on original data analysis of over 2,300 publicly listed companies around the world and more than 160 in-depth one-on-one interviews and surveys of women at all stages of their careers, this report illuminates the current levels of gender inequality in these legacy industries; examines the many ways that women can advance, or are advancing, positive change; pinpoints factors preventing gender diversity; and highlights best practices to address them.
Across the fourteen legacy industries studied, women on average represent just over 20 percent of the employees hired by publicly listed companies around the world, constitute only 18 percent of executive management, and hold a mere 13 percent of board seats.
Average % of Women (2017-2018) ...
21%... employed
18%... in management
13%... on boards
Scope of Selected Legacy Industries
Energy
Oil & Gas
Coal
Consumer Products
Alcohol
Tobacco
Utilities & Waste Services
Electric & Gas Utilities
Environmental Services
Water Utilities
Materials
Paper & Forest Products
Construction Materials
Containers & Packaging
Metals & Mining
Chemicals
Industrials
Aerospace & Defense
Construction & Engineering
In Employment
Alcohol and tobacco register the highest percentages of employed women; however, this figure remains well below the equity level. Meanwhile, construction materials and metals & mining represent the lowest percentages.
Gender ParityGender Parity
Alcohol
31%
Tobacco
30%
Environmental Services
26%
Oil and Gas
25%
Water Utilities
24%
Electric & Gas Utilities
24%
Aerospace & Defense
23%
Containers & Packaging
22%
Chemicals
21%
Construction & Engineering
18%
Paper & Forest Products
17%
Coal
16%
Metals & Mining
15%
Construction Materials
14%
In Leadership
While women are under-represented in overall employment, percentages drop further in leadership roles, including both on boards and in executive management.
Gender ParityGender Parity
Alcohol
28% Management
14% Board Members
Water Utilities
24%
20%
Environmental Services
23%
12%
Containers & Packaging
22%
15%
Electric & Gas Utilities
21%
16%
Tobacco
21%
20%
Oil and Gas
20%
12%
Aerospace & Defense
18%
18%
Construction Materials
17%
15%
Chemicals
17%
11%
Paper & Forest Products
15%
15%
Metals & Mining
15%
13%
Construction & Engineering
14%
10%
Coal
14%
9%
Note: The analysis was based on over 2,300 publicly listed companies, data for which were retrieved from Bloomberg in May of 2019. The sample size varies by metric, due to the limited data availability, and is 2,371, 290, and 808 for the percentage of women on boards, in management, and overall employment, respectively.
What Transformative Impacts Are Women Making?
As legacy industries face intensified pressure to innovate and transform, improving gender diversity could provide a means to facilitate and accelerate change. FPA’s company-level data analysis identified a positive correlation between women’s representation in senior management and corporate profitability, and between women’s representation on boards and corporate performance in managing and disclosing environmental, social, and corporate governance (ESG) matters. In addition, both female and male interviewees across the globe shared insights on how women of different occupations and seniority levels are advancing significant, positive organizational and industry changes by:
A variety of market challenges are straining the bottom lines of a host of legacy industries. Changing global market conditions are intensifying competition among long-time industry rivals, while innovative new entrants shake up established business models. Consumers, particularly millennials and younger generations, are becoming more health-conscious and increasingly factoring environmental, social, and corporate governance considerations into their purchasing decisions, demanding less-harmful products and more sustainable corporate practices. Together, these factors are pushing companies to improve productivity and efficiency while evolving their business models toward addressing today’s critical environmental, social, and health challenges.
Increasing gender diversity could provide a means to respond to such pressures and enhance competitiveness and profitability. FPA’s company-level analysis reveals that a higher percentage of women in executive management is associated with higher profitability. Interviewees detailed how women are leading their organizations down new revenue-generating paths, advancing innovation in inertia-prone industries, and increasing transparency to build stakeholder trust.
Corporate Profitability by Quartile of Women’s Representation
The top-quartile companies with the highest percentage of women in executive management roles are, on average, 47 percent more profitable than those in the bottom quartile.
Bottom-quartile companies with the lowest percentage of women in executive management roles
Top-quartile companies with the highest percentage of women in executive management roles
Note: Profitability is measured by earnings before interest and taxes (EBIT) margin as of 2018 or 2017 (where data are unavailable for 2018). Data were retrieved from Bloomberg in May of 2019. To incorporate the impact of profitability variance among industries, data of individual companies were adjusted relative to their industry peers.
Corporate Transparency by Quartile of Women’s Representation
The top-quartile companies with the highest percentage of women on boards, on average, are 32 percent more transparent in terms of ESG information disclosure, compared to those in the bottom quartile.
Bottom-quartile companies with the lowest percentage of women on boards
Top-quartile companies with the highest percentage of women on boards
Note: Transparency is measured by Bloomberg ESG Disclosure scores (on the scale of 0.1–100) and based on the amount of environmental, social, and corporate governance-related information a company reports publicly, for 2018 or 2017 (where data are unavailable for 2018). Data were retrieved from Bloomberg in May of 2019.
Meet Women Contributing to Profitability and Competitiveness
Advancing InnovationMining
“There is a big and invisible corrosion risk in mining that we know causes fatal failures, production losses, and environmental releases. It’s an area where we can really make an impact.”
“We’re bringing adjacent technology and risk management approaches from other sectors into mining. There is a big and invisible corrosion risk in mining that we know causes fatal failures, production losses, and environmental releases. It’s an area where we can really make an impact.”
Zoe Coull, Founder of ICE Dragon Corrosion, a Canada-based consultancy specializing in corrosion risk management, is pioneering anti-corrosion practices and technology in the mining industry; though widely adopted in other industries, such as oil and gas, they have been traditionally overlooked by mining companies. By reducing corrosion risk in mining project design and development, the company helps its clients to reduce losses from corrosion failures while improving production safety.
“When it comes to seeing what the opportunity is and saying, ‘Yes, we can do that,’ I'm absolutely fearless.”
Cara Olmsted, Director of New Business Development at ConEdison Solutions, works in the utility industry, where traditional business models have been disrupted by the emergence of renewable energy, the advancement of digital technology, and market deregulation. She is leading cross-functional teams to develop and deliver new business initiatives covering distributive generation, micro-grids, battery storage, and energy-efficiency services, among other plans, contributing to the energy company’s continued efforts to expand business portfolios.
“I always ask WHY—‘Why can’t it be done?’ I never settle for the answer of ‘But we can’t do it’ or ‘It can’t be done.’”
“I always ask WHY—‘Why can’t it be done?’ I never settle for the answer of ‘But we can’t do it’ or ‘It can’t be done.’ It often results in a heated debate, but once cooler heads have prevailed, the solution often has presented itself.”
Nicolette Skjoldhammer, Managing Director of Betterect, a South African firm focused on steel fabrication and erection, challenged the default or “can’t do” mentality within her division and prompted an effort to remold obsolete equipment for new functions. This innovation introduces greater efficiency into company operations, cuts costs, and helps to strengthen the company’s bottom line.
Many of the legacy industries included in this study are primary energy and natural resource users and face considerable pressure to minimize pollution and their impact on the environment, while also well positioned to develop and implement solutions. In the meantime, as consumers and investors increasingly factor environmental considerations into their purchasing and investment decisions, and the public sector strengthens environmental regulations, how well a company manages environmental impacts directly affects its revenue, legal compliance costs, and long-term financial viability.
Greater gender diversity has the potential to facilitate the transformation that enables these legacy industries to become more environmentally responsible while retaining competitiveness. Companies with greater gender diversity on boards were found to have better environmental performance, and those with increased gender diversity over time also demonstrated higher likelihood of improvement in this area. Mission-driven women are also helping their organizations respond to regulatory pressure and societal backlash against pollution by advancing greener production processes and innovating environmentally sustainable alternatives.
Likelihood of Decreased Environmental Impact with an Increase in Gender Diversity on Boards
Companies with improved gender diversity on boards from 2013 through 2018 were 60 percent, 39 percent, and 46 percent more likely than those without to reduce the intensity of energy consumption, GHG emissions, and water use, respectively.
Energy Intensity
No Change/Decline in Percentage of Women on Boards
Increase in Percentage of Women on Boards
GHG Emission Intensity
No Change/Decline in Percentage of Women on Boards
Increase in Percentage of Women on Boards
Water Intensity
No Change/Decline in Percentage of Women on Boards
Increase in Percentage of Women on Boards
Note: Likelihood is measured by the percentage of companies experiencing improvement in environmental metrics based on whether there is a positive or negative/no change in women’s representation on boards over the period from 2013–2018. Data were retrieved from Bloomberg in May of 2019.
Meet Women Contributing to Environmental Sustainability
Improving Environmental Performance on the GroundMetal
“It is extremely important that we have the trust of the community where our facilities are located. We have to […] understand the expectations of the community and continuously improve our performance to meet those expectations.”
“From an environmental or a broader sustainability point of view, it is extremely important that we have the trust of the community where our facilities are located. We have to not only comply with legal requirements, which is basic, but go beyond that to understand the expectations of the community and continuously improve our performance to meet those expectations.”
Carolina Bengochea is the Environment Director of Tenaris, a global manufacturer of steel pipes. While based in Argentina, she leads and coordinates a diverse team of environmental specialists across the company’s production plants around the world, defining and implementing internal procedures to improve environmental performance. Thanks to their effort, 92 percent of the company’s industrial sites have ISO 14001 certifications—the voluntary international standard that helps an organization to improve environmental performance through more efficient use of resources and reduction of waste.
“The initiative has really helped to focus companies in the industry on the same endpoints. They’re all accomplishing their individual goals in different ways, but everyone is rowing in the same direction. We not only talk the talk, but we walk the walk.”
Donna Harman, the former President of the American Forest & Paper Association (AF&PA), dedicated her service at the association to prompting the industry to achieve sustainable resource consumption and production along the entire value chain. Under her leadership, the AF&PA launched the Better Practices Better Planet 2020 initiative in 2011, which established an extensive set of sustainability goals covering energy efficiency, paper recycling, and GHG emissions, among others. As of 2018, the industry had surpassed two out of the six goals ahead of schedule and had made significant progress on the rest. Harman’s successor, Heidi Brock, another female manufacturing leader, is planning to build upon the initiative’s success and update the goals for years beyond 2020.
“I want to prove that we can really transform agriculture with products that work as well as chemicals ... and really have an impact on growers, improving their bottom line while at the same time providing sustainability for future generations.”
Pamela Marrone, Founder and CEO of Marrone Bio Innovations, was a pioneer in the development and commercialization of biopesticides in the 1980s and since then has dedicated her career to developing effective and environmentally responsible bio-based products for pest management and plant health, which help to reduce toxic chemicals for pest control. A serial entrepreneur, she has the ambition to turn her latest venture, Marrone Bio Innovations, into the largest ag-bio company.
Today, corporate social responsibility (CSR) has grown to include a broad scope of issues, including labor rights in the supply chain, occupational safety and health, gender equality in the workforce, and companies’ impact on local communities, among others. Legacy industries are no exception and have the potential to bring about far-reaching, positive social impacts—and women can be an important force to drive these changes.
FPA’s data analysis found a positive correlation between gender diversity on corporate boards and companies’ performances with regard to social responsibility. Women are implementing socially responsible practices within their industries by protecting safety and labor rights, integrating community development into business strategies, and building local capacity and empowering women.
Corporate Social Responsibility Performance by Quartile of Women's Representation
The top-quartile companies with the highest percentage of women on boards, on average, have a rating of their social responsibility performance 74 percent higher than those in the bottom quartile.
Bottom-quartile companies with the lowest percentage of women on boards
Top-quartile companies with the highest percentage of women on boards
Note: Provided by Sustainalytics and measuring a company’s percentile rank (on the scale of 0–100) based on its social responsibility performance score relative to its industry peers for 2018 or 2017 (where data are unavailable for 2018). Data were retrieved from Bloomberg in May of 2019.
Meet Women Contributing to Corporate Social Responsibility
Integrating Local Businesses and Workers into Supply ChainsMining
“I help mining companies to understand the relationship they will have with the community and build the relationship, making sure that the communities are part of the projects, they can participate and benefit from them, and they have a voice.”
“I work to ensure that the mine comes as a part of the local economy rather than being the ruler of the economy, while respecting the communities as they are. I help mining companies to understand the relationship they will have with the community and build the relationship, making sure that the communities are part of the projects, they can participate and benefit from them, and they have a voice.”
Monica Ospina, based in Toronto, Canada, is pioneering ways in which mining companies can more effectively integrate community development into their strategic planning and business activities. With over fifteen years of specializing in CSR and managing social risk, Monica's extensive experience in community engagement led her to design solutions for Land Access in exploration, and the Local Community Procurement Program (LCPP) in operation. In 2012, the LCPP was recognized by the World Bank as an innovative sustainable supply chain model, which enables companies to maximize project efficiency and meet social investment goals while ensuring the participation of local communities.
“The steel industry has been very low-profile [in Argentina], and we need to communicate more with the public—not only about process improvements, but also all the benefits steel can have for society.”
“The steel industry has been very low-profile [in Argentina], and we need to communicate more with the public—not only about process improvements, but also all the benefits steel can have for society. I started to realize that maybe we should focus more on construction and on social housing, because those are the needs of our country.”
Flora Otero, an engineer and sustainability manager at Acero Argentina, the country’s steel industry association, sees a great opportunity for steel amid rapid urbanization and has established the industry as a key stakeholder in energy-efficient, socially conscious urban development. She brought together steel companies to join players from the construction industry and others to participate in Barrio 31, a World Bank-funded affordable housing project situated in the heart of Argentina’s capital, Buenos Aires. The project set ambitious targets for energy efficiency in both construction and operation, including the installation of solar panels on all buildings, which would reduce carbon emissions by an estimated 50 percent and result in a roughly 90 percent reduction in water usage during the construction phase. Launched in 2016, the partners have constructed 1,200 affordable housing units, benefiting migrants and low-income families.
“Sometimes what we forget in engineering is the humans who are the operators, the beneficiaries, the caretakers.... We as a sector, which is heavily male- and engineering-dominated, tend to forget the human elements in every machine. Somebody has to turn the damn thing on.”
“Sometimes what we forget in engineering is the humans who are the operators, the beneficiaries, the caretakers.... Engineering is mostly about the machines and all the technical aspects. We as a sector, which is heavily male- and engineering-dominated, tend to forget the human elements in every machine. Somebody has to turn the damn thing on.”
Lincy Paravanethu has worked in the water, sanitation, and hygiene (WASH) sector in India for much of her career. She was concerned by the lack of attention paid to how women, who are largely responsible for collecting clean water in lower-income countries, interact with wells and other water facilities in their day-to-day lives. To tackle the issue, Paravanethu founded the Vivir Consultancy in 2019, which supports NGOs and companies on how to train communities and municipality officials in using and maintaining sanitation and water infrastructure, with a particular focus on women. Though it’s still in its early stages, Paravanethu is hopeful that the consultancy’s work will accelerate through those who are trained, and significantly increase hygienic sanitation and clean water access for local residents.
Creating Inclusive Corporate and Industry Cultures
In the face of shifting global market conditions, competition from newer industries, and a period of technological transformation, the ability to attract new talent and leverage the creativity and expertise of employees will be key to legacy industries’ growth. Perceptions of legacy industries as being white, male, and slow to change can make them relatively unattractive to several segments of the labor force, including women, racial minorities, LGBTQ+ people, and young people. In response, women, in these industries, together with their male allies, are creating more diverse and inclusive workplaces by leveraging leadership positions to create top-down change and pushing corporate leaders to institutionalize gender equality and inclusivity through practical policies and initiatives.
Meet Women Creating Inclusive Corporate and Industry Cultures
Creating Inclusive Corporate Cultures from the Top DownChemicals
“[Inclusivity is] what I want my legacy to be. […] ensuring that every employee feels that they have a voice and a seat at the table regardless of their background, their gender, their race, their sexual orientation, or their level in the organization.”
“[Inclusivity is] what I want my legacy to be. It’s that we’re not just a successful company, but one that is all about ensuring that every employee feels that they have a voice and a seat at the table regardless of their background, their gender, their race, their sexual orientation, or their level in the organization.”
During her tenure at Innophos, Kim Ann Mink was one of only a few female CEOs of a publicly listed US chemical company. She made diversity a priority when she joined the company in 2015 and integrated it into how the company defines its success. Key to her success was ensuring that the senior leadership was fully committed to inclusivity, a method she refers to as setting the “tone at the top.” Under her leadership, the company successfully shifted the balance of the C-suite and board from being male-dominated to having 43 percent and 50 percent female representation, respectively, in just four years.
“When we had the Women in Titanium organization, more and more women felt, ‘Oh, there’s a place for me. There are people that look like me. There [are] other women there, I’ll feel a little bit more comfortable.’”
“When we had the Women in Titanium organization, more and more women felt, ‘Oh, there’s a place for me. There are people that look like me. There [are] other women there, I’ll feel a little bit more comfortable.’ … People want to go into an organization where they're going to feel welcomed.”
Dawne Hickton is the EVP of Jacobs Solutions and the founder of Women in Titanium. After becoming the first female chair of the International Titanium Association (ITA) in 2014, Dawne noticed how few women were actively involved in the organization—she estimates that of 1,000 conference attendees that year, just forty were female. In response, she and the other women created Women in Titanium, which has since successfully increased female participation, supported women’s professional development, and amplified their voices throughout the industry.
Advocating for Greater Diversity and InclusionEngineering
“We are trying to develop leaders [from] the members that we currently have, who have a desire to be in leadership and [to] support them in their journey.”
Justina Sanchez, is a product safety engineer at TÜV SÜD America, a multinational engineering company, who recently founded a company-wide women’s network in the Americas. Having been inspired by the opportunities she accessed internationally, including mentoring by an industry CEO, she wanted her female colleagues at TÜV SÜD America to benefit from similar experiences. To secure the buy-in from company leadership, Sanchez made a bold move to pitch her idea to her CEO and demonstrated the business case for diversity. The idea was well received, and she was able to secure a budget to make the women-focused initiative a reality. The new program pairs women in the early stages of their careers with senior leaders as mentors and offers leadership training and professional development opportunities.
How to Further Unleash Women’s Potential as Changemakers
Despite women’s great potential as changemakers, they are still facing a variety of barriers to entry and advancement in these industries, which limit their potential to drive organizational and operational changes. While many of the barriers are common across all industries, they can be particularly severe in male-dominated legacy industries.
Major Factors Inhibiting Greater Gender Diversity in Male-Dominated Legacy Industries
Retention challenges related to work life balance
59%
Unwelcoming corporate culture for women
57%
Retention challenges related to perceived lack of career mobility
40%
Negative industry image
39%
Gender imbalance in STEM education
36%
Difficulty re-entering the industry after taking parental or caregiving leave
35%
Source: FPA survey among women in the male-dominated legacy industries that are included in this study. Responses to survey question: “What factors inhibit greater gender diversity in your industry? (Choose no more than three.)” Total responses = 129.
However, many leading companies are striving to reap the benefits of gender diversity as other stakeholders and advocates take targeted actions to remove these barriers and support women’s contribution to business growth and transformation, including:
The legacy industries in this study are experiencing periods of intense transformation and adaptation as they respond to consumer and investor pressure to both modernize and curtail the harmful impacts their products and/or operations have on the environment; both require large numbers of professionals qualified in science, technology, engineering, and mathematics (STEM). However, the persistent gender gaps in STEM education and negative industry reputations contribute to significant under-representation of female talent in the professional pipelines of these male-dominated industries.
UNESCO found that in 2016, the majority of girls who pursued STEM-related studies concentrated on courses focused on health and welfare, while only 8 percent chose engineering, manufacturing, or construction courses.
In the EU, women represent just 20.2 percent of researchers in the business enterprise sector, compared to 42.1 percent of researchers in the higher education sector, where they are paid considerably less.
FPA’s interviewees, based on their past experiences as students and their current positions working with girls, noted that effective interventions begin early— before girls enter secondary education— and continue throughout their school and university careers.
The Solutions
Providing dedicated professional training and certification for women
Nontraditional Employment for Women (NEW) and Oregon Tradeswoman (OTI) offer tools training and maintain direct hiring arrangements with local apprenticeship programs. The impact is clear: NEW has placed roughly 1,300 graduates in apprenticeships since 2005.
One example of an early-intervention program is the She Can Camp, run by the Smithsonian Air and Space Museum in Washington, D.C. The summer camp is open to girls aged eleven through thirteen who attend schools in low-income areas, and aims to instill a love of, and curiosity about, space and science. In its first two years, the camp has served 120 girls from the Washington, D.C., area.
On the hiring side, companies like Northrop Grumman and JTI are seeking to mitigate the effects of unconscious bias in hiring and promotions by ensuring a gender balance in interviewer panels.
Bridging the gap between female talent and STEM job opportunities
The Brooke Owens Fellowship, a volunteer-run non-profit, places female STEM students in internships at aerospace companies, providing the opportunity to gain experience while learning more about possible professional opportunities in the industry. See more below.
of respondents to FPA’s survey cited the gender imbalance in STEM education as a major factor inhibiting gender diversity in their respective industries
40%
of respondents to FPA’s survey said that a negative industry image is a main factor inhibiting gender diversity in their respective industries.
Bridging the gap between female talent and STEM job opportunities
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Case Study
Brooke Owens Fellowship for Women in Aerospace
One pioneering initiative that is working to close the gap between female STEM graduation and employment is the Brooke Owens Fellowship, a non-profit established in 2017 by three industry leaders in aerospace. The fellowship is open to women, non-binary, and transgender undergraduate students and consists of three main elements: 1) a paid summer internship at a top aerospace firm; 2) mentorship from senior industry figures; and 3) access to the alumnae-support community. The fellowship’s impact has been swift: The high volume of applicants challenges an industry narrative that women are either not applying to, or qualified for, jobs in aerospace, while the number of participating companies grows each year. Many alumnae now work for companies where they interned, though the fellowship has also had a broader impact. According to Lori Garver, one of the fellowship’s founders, other women have reported that they “feel more welcome and [are] more likely to stay in this field because of the clear intention to recruit and retain and value more women, because of the fellowship.”
Gender-based discrimination and harassment, lack of supportive policies and facilities, and lack of female role models are major barriers to success in male-dominated industries that can drive women out of the workplace.
Seventy percent of respondents to FPA’s survey [on working in male-dominated industries] reported that they were aware of a gender-based pay gap in their industry, close to half of whom reported experiencing this personally.
A 2017 survey of nearly 1,500 U.S.-based female former engineers revealed several issues as their main reasons for leaving the profession: The overwhelming majority of respondents cited insurmountable problems around lack of flexibility, long hours, and insufficient pay to cover childcare costs.
Interviewees attributed the lack of female leadership to both gender discrimination and the lack of institutional support for women, specifically noting the impact of the “visibility gap” and poor retention of women, which create a “leaky pipeline” to leadership in which the representation of women decreases at each successive career stage.
Interviewees also noted the impact of limited upward or cross-divisional mobility, or “glass walls” with respect to women’s professional advancement, whereby women’s concentration in certain occupations (such as administrative roles) and absence from others (such as strategic or financial roles) cause them to lack the necessary official or unofficial experience to compete for leadership positions in their companies
The Solutions
Reporting upon and closing gender-based pay gaps
Interviewees uniformly advocated for greater reporting of pay scales and salaries for all positions, praising the UK’s Equality Act 2010 Regulations of 2017 on mandatory pay-disparity reporting for any company over 250 employees.
Combatting sexual harassment by establishing clear policies and reporting mechanisms
More than one-third of countries globally do not have legislation prohibiting workplace sexual harassment, and more than half of companies in high-income countries surveyed by Equileap, a non-profit organization focused on gender equality in the corporate sector, did not have policies to address sexual harassment.
Inviting women to participate in decision-making and project allocation
Male and female interviewees recommended that companies require leaders and employees to go through unconscious bias training to instill a company-wide commitment to inclusive behavior. Male interviewees also noted that men should act as advocates for their female colleagues and direct reports in meetings.
Implementing policies that support work-life balance
Across industries, female interviewees felt that their companies did not offer sufficiently flexible work policies or parental leave to enable them to balance their work and family lives.
As part of an effort to create more inclusive, safer work environments, in 2019, the U.S. regional division of Skanska, a multinational construction company, became one of the first companies to introduce personal protective equipment (PPE) designed specifically for women. To learn more, see Skanska case study below
Diversifying shortlists for promotions and succession planning
A male CEO interviewee noted that one key aspect of diversifying succession plans is to ensure that promising women are exposed to experiences they would need to be considered for top jobs—for example, giving a woman under consideration for a future CFO position the chance to operate profit-and-loss projects.
Providing mentorship and sponsorship programs for women
At TÜV SÜD, a global company with expertise in product certifications and approval tests, a program matches female employees with senior managers in different divisions so that they can access support from someone not associated with their ongoing performance reviewing or day-to-day work.
Reporting upon and closing gender-based pay gaps
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Combatting sexual harassment by establishing clear policies and reporting mechanisms
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Inviting women to participate in decision-making and project allocation
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Providing mentorship and sponsorship programs for women
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70%
of respondents to FPA’s survey said they were aware of a gender-based pay gap in their industry, half of whom had experienced this personally.
48%
of FPA’s interviewees, including those who had spent multiple decades working in their respective industries, had never directly reported to a woman.
Implementing policies that support work-life balance
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Diversifying shortlists for promotions and succession planning
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Providing dedicated facilities for women
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Carissa Schutzman, Ph.D., a researcher at Thomas More University who studies women in manufacturing, says, “The male perspective and experience in manufacturing is the default. Women are always seen as ‘others,’ and the way they do things can be different. Unfortunately, the male leadership often look at it as difference, rather than difference is bringing diversity and a new perspective on how the work could be done. The male default is what is common but not necessarily what is best.”
Where Women Are the Most Under-represented in Male-Dominated Legacy Industries
The top three occupations reported by survey respondents as where women are the most under-represented across their respective industry (by % of responses):
Engineering
59%
Field & Plant Operations
67%
Corporate Strategy
50%
Source: FPA survey among women in the male-dominated legacy industries that are included in this study. Total responses = 127.
Three Key Factors Shared By Inclusive Companies
They have a top-down commitment to building a diverse workforce and creating an inclusive culture, including zero tolerance for bullying or sexual harassment, and a clear set of anti-harassment policies.
They take a holistic and systematic approach to women’s representation, consisting of measures that ensure equal access to hiring and promotion opportunity at different levels and engaging employees—both men and women—through the implementation process.
They set transparent targets and roadmaps for increased female employment and leadership, which are key to shifting corporate culture away from words and toward action, and enable the ongoing measurement of the effectiveness of new policies.
Case Study
Skanska Provides Protective Equipment Designed for Women
As part of an effort to create more inclusive, safer work environments, in 2019, the U.S. regional division of Skanska, a multinational construction company, became one of the first companies to introduce personal protective equipment (PPE) designed specifically for women. Traditionally, many companies and manufacturers have offered PPE in sizes and styles fitted for men’s bodies, which create safety risks for women on construction sites, where ill-fitting vests and gloves can get caught on machinery. Skanska’s effort is notable for its engagement of female employees throughout the design process. The new vests and gloves are now available to female employees across the U.S., with plans to expand the range of available equipment in 2020, and feedback from women in the company has been glowing. Skanska hopes this will have a broader, industry-wide impact. As Jarrett Milligan, VP of Environment Health & Safety, commented, “That’s something that we pride ourselves on here. While construction is an ever-evolving industry, it can be a slow and steady process to adopt new methods. To see this getting traction pretty quick and to see some of our competitors even praising us [is gratifying].”
In male-dominated industries, female professionals are at higher risk of isolation from other women, including peers and role models, and exclusion from professional networks. Female interviewees expressed that they often find themselves to be “the only woman in the room” at their companies or on their teams. Further, they do not have access to the same opportunities as men to participate on panels at conferences or be formally recognized for their work. These factors contribute to companies’ poor retention of female employees and failure to tap into their talent.
More than two-thirds of FPA’s interviewees reported that their companies did not offer professional-development opportunities.
The Solutions
Expanding networks of support and voicing female employees’ needs
Female interviewees highlighted how women’s networks create a safe space for them to share experiences, seek advice, and receive guidance and support, and can play a role in voicing female employees’ needs.
Hosting women’s professional networking events and engaging men
Inviting and including men in the organizations’ events not only creates opportunities for women to engage with male allies in their networks, but also helps to create buy-in among participating men about promoting gender diversity across industries.
Providing access to education and professional resources
In 2018, Women of the Vine & Spirits formed a strategic alliance with the Wine & Spirit Education Trust to increase visibility and provide career-advancement opportunities for women in the alcoholic beverage industry. To learn more, see the case study below.
Increasing visibility and creating rewards to highlight women’s achievements
The Manufacturing Institute’s STEP Ahead Awards recognize women in the industry who demonstrate excellence and leadership and provides professional development for them to mentor and support the next generation of female talent. In the first five years, STEP Ahead Award winners impacted more than 300,000 individuals.
Expanding networks of support and voicing female employees’ needs
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Hosting women’s professional networking events and engaging men
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36%
of respondents to FPA’s survey cited the gender imbalance in STEM education as a major factor inhibiting gender diversity in their respective industries
Providing access to education and professional resources
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Increasing visibility and creating rewards to highlight women’s achievements
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Sita Sonty, a board member of Women in Aerospace, also highlighted the importance of hosting more “non-gendered” events on subjects interesting to both female and male professionals and inviting male speakers and participants. She contended, “The more we create non-gendered events, the more level the playing field will be.”
Interviewees highlighted three primary types of women’s networks that they considered instrumental to their professional advancement and well-being:
Employee resource groups (ERGs) for women are company-supported, internal organizations (also known as “affinity groups,” “employee networks,” and “diversity councils”), particularly common in large companies.
Committees or councils specifically for women housed within industry professional associations capitalize on the industry association’s influence and member networks to reach and support women professionals across the industry.
Grassroots organizations, founded and driven by individuals in the associated industry, operate on regional, national, or international levels and typically focus on creating social networks for their members through on-site events or online communities. *Based on FPA interviews
Case Study
Women of the Vine & Spirits Offers Career-Advancing Certifications
Collaborating with educational or certification organizations is an emerging practice among women’s organizations to support women’s professional development, as demonstrated by Women of the Vine & Spirits (WOTVS). In 2018, WOTVS formed a strategic alliance with the Wine & Spirit Education Trust, a global organization offering courses and internationally recognized certifications in the development of wine, spirits, and sake to increase visibility and provide career-advancement opportunities for women in the alcoholic beverage industry. Deborah Brenner, WOTVS Founder and CEO, contended that this alliance has led to increased certification, which provides personal and professional benefits, among its members: “It’s twofold. It’s telling people, ‘I am qualified for this,’ and it’s also giving women confidence. Women tend to really thrive and build their self-esteem by having that certification and that education. It’s important for them.”
Female entrepreneurs in male-dominated industries struggle, even more so than in other business ecosystems, to access funding and build their business capacity. Investors are often inclined to seek investment opportunities that match previous successful projects, which are anchored to male founders and teams. In addition, a number of venture capital (VC) firms mainly rely on introductions through internal referrals or trusted connections, thus creating a challenge for women, whose networks are less likely to overlap with those of men working in VCs.
In emerging markets, women-owned businesses (WOBs) comprise just 28 percent of business establishments, according to a 2017 report by the IFC on micro, small, and medium enterprises.
According to the IFC, women only hold 10 percent of all senior positions in private equity and venture capital firms around the globe.
The Solutions
Establishing public funding initiatives for female entrepreneurs
Innovate UK’s Women in Innovation Program, a public body funded by the British government, funds business and research collaborations. It consists of a funding competition and events to encourage female-led innovation.
Establishing business incubators and accelerator programs for women
The Artemis Project – an initiative of Women on the Move (WOM) Inc., Canada’s leading business accelerator for female founders in STEM-related industries - accelerates business outcomes for female entrepreneurs in the metals & mining industry. See more below.
Establishing public funding initiatives for female entrepreneurs
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Closing the gender gap in private equity and venture capital investing
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Establishing business incubators and accelerator programs for women
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10-13%
of global venture capital went to female-founded startups each year over the period Q1 2014 through Q3 2019, according to Crunchbase.
2x
Just between 2017 and 2018, the total assets in public and private gender lens products doubled to $4.65 billion.
Gender Lens Investing: A Growing Trend
One increasingly popular strategy to support female entrepreneurs is gender lens investing (GLI), which refers to a wide range of practices and targeted outcomes that incorporate gender-based factors into investment decisions. First emerging in the early 1990s, this trend encourages investors to finance businesses—including both large corporations and small enterprises—that were founded by women, have women in leadership and board positions, support women-inclusive corporate practices, and/or provide products or services that positively impact women and improve their status and living conditions. GLI has gained momentum in recent years: just between 2017 and 2018, the total assets in public and private gender lens products doubled to $4.65 billion.
Interviewees cited the following for venturing out on their own:
Female entrepreneurs didn’t see a clear pathway to materialize their innovation or business ideas within larger, established companies.
Limiting and discouraging corporate cultures at their previous employers pushed female entrepreneurs to start their own businesses.
Starting their own businesses provided the flexibility needed to balance work and personal responsibility.
Case Study
The Artemis Project Provides Support and Community for Female Entrepreneurs
Some individual women are taking the initiative to support female entrepreneurs in male-dominated industries through business incubators and accelerator programs. One notable example is the Artemis Project, the brainchild of Women on the Move (WOM) Inc., Canada’s leading business accelerator for female founders in STEM-related industries. In 2018, WOM’s Founder, Heather Gamble, launched this tailored capacity-building program, which accelerates business outcomes for female entrepreneurs in the metals and mining industry through its entrepreneur collective and business-development assistance. With a growing network of more than thirty-five female entrepreneurs in the industry, the program provides a peer network for other female entrepreneurs to tap into. Heather says she wants to “help them develop outcomes, not just put a glossy brochure together,” which she does through one-on-one business-development coaching and networking. In addition, the program brings relevant women-owned businesses together, co-creates unique solutions, and then takes them as a delegation to meet with executives in mining companies and build business relationships.
Failure to increase the representation of women across these male-dominated legacy industries will limit their potential to innovate and transform for positive global impacts and to reap the financial and organizational dividends of a gender-diverse workforce. Meaningful progress will require a concerted effort from a variety of stakeholders, including policymakers, companies, investors, industry associations, and NGOs around the world. It is only through the concurrent and collaborative work of these actors that gender equality and the associated benefits can be achieved. Concrete, meaningful steps can be taken now by a range of stakeholders, including:
National governments and multinational organizations can play central roles in crafting, passing, and enforcing laws and regulations around gender equality and workplace inclusion. Actions include:
Fulfilling commitments to the UN Sustainable Development Goals, the Beijing Declaration and Platform for Action, and international treaties such as the Convention on the Elimination of all Forms of Discrimination Against Women;
Enhancing national legislation on women’s rights and social welfare systems;
Mandating information disclosure and greater transparency regarding the gender pay gap and sexual harassment;
Establishing collaborative partnerships with private-sector companies.
Companies, including multinationals and all their subsidiaries, can purposefully create a safe, equitable, and inclusive work environment for all employees, make gender equality an explicit business priority, allocate financial and non-financial resources to creating change, and put in place active interventions. Actions include:
Setting transparent targets and building roadmaps;
Enforcing a zero-tolerance policy for sexual harassment;
Reporting on gender-based pay gaps and working actively to close them;
Leading a cultural shift in their wider industry;
Mobilizing existing company infrastructure to push for change.
Industry associations can make gender diversity an industry-wide priority, facilitate collaboration among different actors, and reduce silos. Actions include:
Celebrating the achievements and contributions of women;
Facilitating best practice sharing;
Advocating for and amplifying the voices of women in the industry.
Just as they can influence industries and companies to alter their practices with regard to environmental, social, and governance outcomes, investors can advocate for an increased focus on gender equality and advance changes in businesses. Actions include:
Applying a gender lens to investment decision making;
Pressing businesses to improve gender diversity and equality;
Increasing the use of open processes for venture fund applications.
Women’s advocacy groups can help facilitate the transformation of male-dominated legacy industries by sharing their knowledge and resources with industry-specific groups and providing support such as unconscious bias training for company leadership and educational workshops for HR professionals who are seeking to hire more diverse candidates. Additionally, other types of advocacy groups can accelerate transformational change by engaging legacy industries as partners rather than adversaries.
All have roles to play in holding companies accountable to their commitment to change by measuring and acknowledging progress (or lack thereof). Researchers and consultants can contribute deeper analysis on the issues impeding gender equality and how best to overcome them. Journalists and news outlets can report on the progress being made by companies and legacy industries on gender diversity and can highlight the transformational impacts that women continue to make across these industries.
Contributing to Corporate Social Responsibility
Today, corporate social responsibility (CSR) has grown to include a broad scope of issues, including labor rights in the supply chain, occupational safety and health, gender equality in the workforce, and companies’ impact on local communities, among others. Legacy industries are no exception and have the potential to bring about far-reaching, positive social impacts—and women can be an important force to drive these changes.
FPA’s data analysis found a positive correlation between gender diversity on corporate boards and companies’ performances with regard to social responsibility. Women are implementing socially responsible practices within their industries by protecting safety and labor rights, integrating community development into business strategies, and building local capacity and empowering women.
Corporate Social Responsibility Performance by Quartile of Women's Representation
The top-quartile companies with the highest percentage of women on boards, on average, have a rating of their social responsibility performance 74 percent higher than those in the bottom quartile.
Bottom-quartile companies with the lowest percentage of women on boards
Top-quartile companies with the highest percentage of women on boards
Note: Provided by Sustainalytics and measuring a company’s percentile rank (on the scale of 0–100) based on its social responsibility performance score relative to its industry peers for 2018 or 2017 (where data are unavailable for 2018). Data were retrieved from Bloomberg in May of 2019.
Meet Women Contributing to Corporate Social Responsibility
Monica Ospina, based in Toronto, Canada, is pioneering ways in which mining companies can more effectively integrate community development into their strategic planning and business activities. With over fifteen years of specializing in CSR and managing social risk, Monica's extensive experience in community engagement led her to design solutions for Land Access in exploration, and the Local Community Procurement Program (LCPP) in operation. In 2012, the LCPP was recognized by the World Bank as an innovative sustainable supply chain model, which enables companies to maximize project efficiency and meet social investment goals while ensuring the participation of local communities.
Read More About Monica's Work Back To All ExamplesFlora Otero, an engineer and sustainability manager at Acero Argentina, the country’s steel industry association, sees a great opportunity for steel amid rapid urbanization and has established the industry as a key stakeholder in energy-efficient, socially conscious urban development. She brought together steel companies to join players from the construction industry and others to participate in Barrio 31, a World Bank-funded affordable housing project situated in the heart of Argentina’s capital, Buenos Aires. The project set ambitious targets for energy efficiency in both construction and operation, including the installation of solar panels on all buildings, which would reduce carbon emissions by an estimated 50 percent and result in a roughly 90 percent reduction in water usage during the construction phase. Launched in 2016, the partners have constructed 1,200 affordable housing units, benefiting migrants and low-income families.
Read More About Flora's Work Back To All ExamplesLincy Paravanethu has worked in the water, sanitation, and hygiene (WASH) sector in India for much of her career. She was concerned by the lack of attention paid to how women, who are largely responsible for collecting clean water in lower-income countries, interact with wells and other water facilities in their day-to-day lives. To tackle the issue, Paravanethu founded the Vivir Consultancy in 2019, which supports NGOs and companies on how to train communities and municipality officials in using and maintaining sanitation and water infrastructure, with a particular focus on women. Though it’s still in its early stages, Paravanethu is hopeful that the consultancy’s work will accelerate through those who are trained, and significantly increase hygienic sanitation and clean water access for local residents.
Read More About Lincy's Work Back To All Examples