Fewer women in the boards of directors, but percentage remains high compared to CEE countries

Although the sector’s male-centric image has decreased somewhat in the last five years, successful female leaders are needed to be put into the spotlight in order for more women to want to work in the energy sector, according to the latest research by Boston Consulting Group (BCG). Surveying 10 countries in Central and Eastern Europe, including Romania, the study was prepared with the participation of 85 energy companies and 4,000 employees. It examines the evolution of the labor market situation of women in the energy sector.

Despite this improvement, there is a widespread perception among job-seeking women that this industry is traditionally dominated by men. This is indicated by the fact that, although 41% of STEM graduates in the region are women, only 28% of those working in the energy sector are women. Moving up the ranks, the proportion of women in the sector continues to decrease. While 23% of top management positions in the region are held by women, only 10% of energy companies in Central and Eastern Europe are managed by women in a CEO position.

The data for Romania shows that the percentage of women working in the energy sector, representing 29%, remained unchanged compared to five years ago (2022 compared to 2018), placing it around the regional average, and being surpassed only by Serbia, Bulgaria, and Slovakia, where this percentage is 40%. However, the percentage of women in the boards of directors of companies in the sector, although experiencing a decline compared to five years ago, positions Romania at the top of the regional ranking with a percentage of 26%, surpassing countries such as Poland (11%), Czech Republic (16%), Hungary (10%), Slovenia (8%).

“The first problem is attracting women to the energy sector. Until it becomes obvious to everyone that women can prevail in this industry and even reach top management positions, the current trend will not improve. Role models are needed, female leaders must be put in the spotlight.” – said Zsófia Beck, Managing Director and Partner of the Boston Consulting Group.

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The research proved the correlation between the number of female top managers and the increase in regional engineering university applications by women.

“To change this situation, companies need to offer practical solutions instead of empty promises. The announced guidelines must be implemented in everyday life, and transparent, credible and inclusive opportunities must be offered to women at every stage of career building.” – pointed out Melanie Seier Larsen, Managing Director and Partner at BCG.

Women are still very underrepresented in the energy sector, their share increased by only 2 percentage points to 28% between 2018 and 2022. Women account for only 14% of company boards, despite the fact that companies with a higher percentage of women in their management are proven to be more successful and react better to crises.

“However, this also requires a serious change in attitudes, so that not we would stop answering the question of what makes a woman different and how diversity could add to the board’s operations, but rather it should be accepted as a fact of life that women are also so talented and educated and are industrious just like men. Women attracted to the industry should be represented in a similar proportion at the top of the ladder like men, if they are motivated and want to be leaders. We need to achieve this change of attitude, which will probably be related to the change in the generations of leaders,” said Ms. Beck.

The COVID epidemic, the continuous increase in the importance of sustainability and ESG criteria (environmentally and socially responsible corporate governance), as well as the war raging in neighboring Ukraine, also have had a serious impact on the energy sector and the role of women in the sector.

As a result of the epidemic, women’s responsibilities at home increased, according to BCG surveys, but COVID has also proved that a flexible way of working is possible. A wider offering of flexible work options would allow energy companies in Central and Eastern Europe to more easily retain experienced staff, BCG found.

In 2018, young men and women mostly considered challenging but successful work, training/learning, and professional development to be the most important aspects of their work. According to the current survey, this has changed significantly. Men and women of all age groups, including younger generations, value work-life balance and job security in the energy sector.

The increased role of ESG criteria and equal opportunity standards boosted the proportion of women in the labor market and brought about the advancement of women into leadership positions. This positive effect was achieved through regulation and strict quotas.

The energy crisis due to the war raging next door and sanctions on Russian energy products have prompted countries to focus on energy transition and accelerate the process. Greater emphasis was placed on renewable energy, IT, and the development of artificial intelligence, and these tasks can positively influence the growth of the role of women in the energy sector.

The research is available in full, in English here:

Women in Energy 2.0: Gender diversity in the CEE-SEE Energy Sector