Diversity being constrained by ‘fear of reputational damage’

Achieving better diversity in the energy sector is being constrained by a “fear of retribution and reputational damage”, Ofgem’s equality chief has told Utility Week.

Lesley Babb, the regulator’s head of equality, diversity and inclusion, was speaking following the launch of a new taskforce which aims to drive industry-wide action to improve diversity in the sector.

The Tackling Inclusion and Diversity in Energy (TIDE) Taskforce will run for 18 months and will see leading industry experts combine cross-sector insights and build on the existing works by various groups.

Babb said that research is showing companies with more diverse organisations and in particular leadership roles are more profitable and successful.

She was asked whether the sector’s push for greater diversity is being constrained by a lack of adequate data on employee characteristics.

In response, Babb said that the topic “came out as a common theme” at last week’s Equity, Diversity and Inclusion in Energy Conference, hosted by Energy UK. While acknowledging the issue, she believes the problem is solvable.

She added: “The energy sector collects data on all sorts of things so to say that this is too much of a barrier is quite frankly a load of rubbish. There just needs to be time and effort put into it. This is why I’m delighted to be part of the TIDE Taskforce.

“One of our first objectives is getting the basics right, to look at gathering this data so that we’ve got a proper evidence base for where we are underrepresented, where are the issues, so that we can start prioritising real action to try and address this from a sector-wide perspective.

“I think some of the barriers are probably due to the fact they haven’t liked what they saw, or they’re frightened. Certainly I think it’s quite hard to shine a light on something that you’re not doing very well on publicly.

“So maybe there’s that fear of retribution and reputational damage. As organisations, we just need to be brave and say ‘we know we’ve got a problem here, this is what the data says’, so that we can really fix it.”

Babb said there is a disparity in the amount of data collected and that while organisations such as Powerful Women have collated data on the gender balance of the sector, data on other characteristics have not been as widely measured.

“But these sorts of things take time to address. It’s a bit like turning a tanker. We are making progress, but it’s too slow really. I think people haven’t seen people like themselves, so perhaps haven’t seen the sector as an organisation where they feel that they could belong, or fit.”

Babb said she believes there is an historic “affinity bias” in the sector and that employers need to ensure they are not recruiting in their own image.

“So I think we need to look at things like cultural barriers and really hold a mirror up to them, and really think about how we recruit a bit more creatively, and not just do the same old thing again and again,” she added.