Let’s not leave women out of the energy transition

Here are some sobering statistics.?Globally women represent only 32% of employees in renewable energy. And our own research undertaken with the Energy Storage Association in India, IESA, suggests women only make up about 17% of energy storage employees in the country.

These statistics really shouldn’t come as a surprise. Gender gaps have been around for decades and only became worse under the COVID-19 pandemic. In fact, the most recent Global Gender Gap report indicates we are now 132 years away from closing gender gaps, and that multiple crises are compounding women’s unequal workforce participation and risk major backslides in gender parity.

Considering women in the energy sector matters. We all realize our energy systems must be a top priority if we hope to confront climate change – and it’s the sector that currently produces three-quarters of global greenhouse gas emissions.

The push to go green and decarbonize does provide the opportunity to create better jobs. It is estimated the renewable energy sector could account for some 38 million jobs by 2030 and 43 million by 2050 under IRENA’s 1.5°C compatible global pathway.

But as is often the case with major transitions, women are unlikely to benefit equally – because they are systematically under-represented in the energy sector both in the workforce and in leadership.?Of course, there are a myriad of issues holding women back in the energy sector – from biased hiring decisions to care responsibilities to some countries’ laws and policies limiting women’s mobility.

It’s also true that fewer women than men have the right skills. A recent analysis showed there are only 62 women for every 100 men with green talent. And even as girls have reached or surpassed boys in education attainment generally, women make up only 28 % of the workforce in science, technology, engineering, and math fields.

That all adds up to a sobering reality. Gender inequality is preventing businesses, economies, and communities from reaching their full potential, especially in the transition to a low-carbon world.

There is growing evidence to support the notion that gender inequality is a barrier to sustainable growth. Companies with improved gender diversity on boards are more likely to reduce energy consumption, GHG emissions, and water use. A recent study suggests that a 1-percentage point increase in the proportion of female managers in a company can decrease their carbon emissions by 0.5%.

Most compelling perhaps is that in order to green, the energy sector needs more skilled workers. Countries are already facing green skills shortages, with demand outstripping supply. This is no time to ignore half of the potential talent that can grow the industry.

It’s why we partnered recently with IESA in India to gain real insight into women’s underrepresentation in the energy storage sector and what steps companies can take to improve the situation.

Working with key players in energy storage to act on gender inequality now addresses the risk that the renewable energy transition in India may inadvertently perpetuate and deepen existing gender inequalities. Action now can create dual benefits for climate change and women’s empowerment through innovative and inclusive solutions.?

We know changes are possible. We’ve seen that in Nepal through IFC’s Powered by Women Initiative.?This program researched 20 companies to build the business case for more gender diversity in the hydropower sector. We found that only 10% of employees were women and only 8% of executives. Only 5% of technical positions were held by women and only 9% of board members were women.

Our work there has led to a 10% increase in mainstreaming gender in new human resources policies, including efforts to prevent bullying and sexual harassment, a 10% increase in organizing women-only consultations during Environmental and Social Impact Assessments, and a 3% increase in women recruited into non-traditional roles. These are all steps in the right direction.

But it also shows us that closing gender gaps require intentional action. More attention is needed?to support girls in STEM and women as employees and leaders. Companies must take steps to reduce gender biases, prevent workplace harassment, and bring women into the workforce. Governments must address gender barriers by removing discriminatory laws and practices.

And while there’s still much work to be done to scale energy storage solutions, we should be turning to women as key participants and problem-solvers.

So as we think about all the steps needed to go green and accelerate green growth, let’s ensure that with such a momentous and urgent transition, we don’t repeat the mistake of the past and ignore the potential of women.??

By Isabel Chatterton, IFC’s Asia Pacific Regional Industry Head for Infrastructure and Natural Resources.