​Do All Women Shortlists, AWS, have a place across Green Sector Leadership?

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Diversity and inclusion have emerged as critical components for success in the race to reverse climate change.

All-Women Shortlists (AWS) have been controversial, yet some would argue, impactful in promoting gender diversity; this has been true of political representation in the UK. But does AWS have a rightful place in shifting gender disparity across green sector leadership?

Women Leadership across the Green Economy

A 2019 BCG (Boston Consulting Group) study, of more than 1700 companies, showed that diversity increases the capacity for innovation and expands the range of companies’ ideas and options, leading to better financial performance.

However, the same data showed that only 23% of the energy sector was made up of women, one of the lowest numbers in any major sector.

There’s only been a 1% increase in that number from 2020 to 2023.

There is an obvious case to readdress this imbalance, particularly given the swift global step change necessary to create a decarbonised world.

Firstly — Some Important Context

Dr Sybille Schiffmann, Founder and MD of Deostara Ltd and Leadership Consultant.

“Diversity is critical to produce meaningful, sustainable solutions to net zero…”

“Nancy Kline, the author of More Time to Think, recognises this for example in group settings, where divergent thinking is encouraged, diverse group identities are embraced and where reality is recognised not as something uniform, or stable but diverse, dynamic and divergent.

So whether you choose to select from All Women Shortlists, or any other combination of talent for your organisation to meet this challenge, first be prepared to fully consider and embrace different perspectives, histories and talents in your selection process, to support meaningful dialogue that generates new solutions to these complex issues.

That is a driving principle for change.”

One method to drive change has been to create All-Women Shortlists.

Advantages of All-Women Shortlists

Enhanced Representation: AWS ensures that women, who have historically been underrepresented in leadership roles, have a fair chance at contributing to decision-making processes. This leads to more balanced and inclusive outcomes.

Diverse Perspectives: Women bring unique perspectives and experiences to the table, which can lead to more innovative and effective solutions to environmental challenges.

Role Models: Having more women in leadership positions can inspire future generations to pursue careers in sustainability and environmental sciences, enhancing a more diverse future talent pool.

However, despite strong arguments ‘for’… the ‘against’ is also very convincing.

Disadvantages of All-Women Shortlists

Perception of Unfairness: Critics argue that AWS can be seen as discriminatory against men, potentially leading to backlash and division.

Meritocracy Concerns: There is a belief that AWS might prioritise gender over qualifications, although research suggests that this is not the case.

Tokenism: There’s a risk that women selected through AWS may be perceived as tokens rather than as qualified individuals. This can damage their credibility and effectiveness.

Negative Backlash: AWS can generate resentment and backlash against women leaders, making it more difficult for them to succeed within the role.

Ineffectiveness: Some argue that AWS is not the most effective way to increase women’s representation. They suggest that other measures that improve company culture, such as mentorship programs and unconscious bias training, would be more beneficial

For some organisations, the ‘positives’ tipped the balance.

Case Study: The UK Labour Party

The UK Labour Party has been a pioneer in the use of All-Women Shortlists, first implementing them in the 1997 general election. This initiative led to a significant increase in the number of female MPs, with notable figures such as Angela Rayner, Jess Phillips, and Stella Creasy benefiting from AWS.

Despite facing legal challenges and criticisms, the Labour Party’s use of AWS has been instrumental in levelling the gender imbalance in Parliament. The success of AWS in the Labour Party demonstrates the potential of such measures to promote gender diversity and drive inclusive leadership.

Legal Challenges

The Equality Act 2010 in the UK aimed to protect people from discrimination in the workplace and wider society. However, it did not explicitly make All-Women Shortlists (AWS) illegal.

The legality of AWS often depends on the specific context and how they are implemented. It’s a complex issue with arguments on both sides regarding fairness and the need for measures to promote gender equality

Ahead of the 2024 election Labour ceased using all-women shortlists for parliamentary candidate selection. After the Labour victory, 46% of the party’s MP’s were women.

It Takes Time to Find the Right Candidate…

Monica Collings, Energy and DEI thought leader, Green Executives Advisory Board,

“We all know that what gets measured gets delivered. If we’re setting organisational targets to achieve equal gender representation in our workforce then businesses have to take these targets seriously.”

“Hiding behind ‘best person for the job’ as a rationale for recruiting is lazy. Putting the time and effort into finding the right candidates to make it easier to choose women, particularly in all-male teams where familiarity bias in selection processes can hinder decision-making, is vital.

Some organisations have seen success in AWS, but I think there’s a broader consideration around how we not only recruit but retain women, build succession plans that support women with flexible environments and ensure pipelines throughout the organisation are well-balanced and reflective of society.

All those things will contribute to a more effective, sustainable approach to accelerating the path to gender equality in the workplace.”

When Asking the Right Questions can Achieve Similar Results

Jo Major, Founder of Diversity in Recruitment, raised this issue of AWS recently on social media. In a recent LinkedIn post, she made valid points as well as practical suggestions.

“Discrimination against men is not the answer to gender representation in hiring.”

When clients request AWS recruitment companies, she suggests lines of questioning;

“What are you doing to make your environment more inclusive for women?

Tell me about your flexible, hybrid, remote & job share working policies?

How are you supporting the development of ALL women across your business?

I’ll need to understand your career path & promotions process.”

… and many more, from pay equality, supporting employees who are carers and those who are menopausal to asking how many women would be present on the interview panel. This line of questioning certainly separates companies that are serious about gender equality but also exposes those where women are missing from the leadership team.

Whilst AWS doesn’t seem to be an option for even the most proactive organisations — it doesn’t deter from the overwhelming issue that leadership numbers are gender skewed and measures to readdress are critical to successful decarbonisation pathways — not to mention equality in the workforce.

A Hybrid Approach

Joe Hetherington, Managing Partner, Green Executives, has a softer, hybrid approach that is worth consideration by companies looking to increase their female leadership.

“Across the Green Economy our clients increasingly expect female candidates on their shortlists, recognising the value of diverse inputs in producing successful leadership solutions.”

“As a B-Corp executive search consultant, we aim to secure the best candidate for each green sector leadership role; increasing female representation is a central consideration.

We address this by asking the question to each client. This not only frames the role criteria but also addresses broader gaps across company DEI pathways. Part of the conversation will involve an AWS option; so focussing on exceptional women based on skills and qualifications alone.

This approach promotes a merit-based selection process and gives each client a choice depending on their existing gender quota, enabling us to prioritise both diversity and excellence without resorting to tokenism.”

Policy on Women in Leadership: The BBC Example

The BBC has been proactive in promoting gender diversity and inclusion within its workforce. Their 50:50 Project, launched in 2017, aimed to achieve gender balance in content and leadership. The project used a data-driven methodology to monitor and shift gender representation within the media.

Progress and Data

Gender Representation in Leadership: As of March 2022, women made up 49.5% of the BBC’s workforce and 47.5% of its leadership roles. The target is to reach 50% for both categories.

50:50 Project Impact: Since its launch, the 50:50 Project has seen significant progress. In March 2022, 61% of BBC teams featured at least 50% women contributors, an increase of 26% since monitoring began.

Disability and Ethnicity Representation: The project has expanded to include disability and ethnicity representation. In March 2022, 53% of datasets achieved their targets for disability representation and 65% for ethnicity representation.

Cultural Shift: The BBC has reported a longer-term cultural shift, with no team featuring fewer than 40% women after three years of monitoring.

The BBC’s commitment to gender diversity is evident in its policies and initiatives, contributing to a more balanced and inclusive workplace. Like other organisations, they are leading from the front, and the outcomes of this conscious, systemic change are visible for all to see.

Leadership at Boardroom Level also needs a Reboot…

Andy Cox, Executive Chairman, Head of Energy Transition, Green Executives Advisory Board.

On boardroom AWS…

“We know there is work to be done to balance board representation across the energy transition and green sector. A recent release from Women on Boards Hidden Truth Report stated that women on AIM (Alternative Investment Market) listed boards are falling back, with 35% of all AIM-listed companies having all-male boards. That’s an increase of 80 companies since last year.”

“Progress is imperative to readdress this. However, I struggle with AWS. I am a strong ally for gender parity in the boardroom but have always had reservations about quotas to force faster progress.”

“All-Women Shortlists are in that vein. What has to shine through is quality and the best person for the role. If that means the shortlist is all women, then great. But let’s not force it.”

So, it’s good to know other parts of the sector are also pushing for these balanced outcomes.

Alternative Approaches, Money Talks

Diversity is not just a moral imperative (although overdue by hundreds of years), it’s now a practical necessity for achieving net zero ambitions, and time is not on our side.

Investors are playing a crucial role in pushing Diversity, Equity, and Inclusion (DEI) agenda across companies, increasingly recognising the link between DEI and financial performance.

For example, a study by McKinsey & Co. found that companies with diverse executive teams are 21% more likely to experience above-average profitability. This has led to a growing trend of gender lens investing, where investors prioritise companies with gender-balanced leadership and inclusive practices.

There are notable examples of investors favouring companies with strong DEI credentials. For instance, Morgan Stanley’s Institute for Sustainable Investing found that more than half of U.S. investors are interested in including gender diversity themes in their portfolios, assuming these investments achieve similar market-rate financial returns.

Additionally, Women’s World Banking has invested approximately $100 million in inclusive financial institutions across Asia, Sub-Saharan Africa, the Middle East, and Latin America, demonstrating a commitment to gender equality and financial inclusion.

By integrating DEI considerations into investment strategies, investors drive positive impacts and therefore are positioned for better financial returns. This mindset aligns with the growing demand for sustainable and socially responsible investing, which seeks to create long-term value for investors, the environment, society… and women.

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