1 2020 // NORWAY ONE SMALL STEP FOR GREATER GENDER EQUALITY
We are very pleased to share the the women themselves; society as such and all SHE Index 2020 – Powered by EY. the participants within the corporate world. We want to support and motivate the corporate Even though we live in a world where world to embark on the changes needed, while “change is the new normal”, some changes are striving for gender equality. Let’s embark on too slow. The World Economic Forum contin- this journey together. Let’s strive for gender ues to report that it will take two centuries equality, laying the foundation for diversity and for women around the world to experience bringing this to life through inclusion. full economic parity, unless we see an in- creased step change. The SHE Index is a catalyst for encouraging stakeholders to focus on diversity and gender As an essential part of Diversity and Inclu- equality within the whole workforce including sion (D&I), gender equality is the common at leadership level, by addressing the relevant denominator within all categories, spanning data including aspirations and actions. By join- from age, disability, race and ethnicity, to sex- ing the Index, companies have taken an impor- ual preference etc. If we struggle to achieve tant step in being a part of the journey towards gender equality, we will never experience gender equality. Even though we have seen a the competitive advantages D&I bring to significant increase in companies joining the the corporate world. We need to do better! Index, we encourage more to do so. We need to ensure that the corporate world mirror society, including our demographic If you want to go fast, go alone. If you composition and the potential work force. want to go far, go together. Be a part There are many stakeholders on this journey; of the change you want to see!
HEIDI AVEN, CEO & FOUNDER, SHE COMMUNITY & CHRISTIN E. BØSTERUD, CEO, EY NORWAY 2 3 SHE INDEX REPORT THE SHE INDEX & WHY WE STILL NEED IT
In 2020 most of us intuitively know that We believe that motivating the corporate PAGE 5 PAGE 12 diversity matters – and that inclusion brings world to address gender equality and THE SHE INDEX & THE SHE INDEX everything to life. This does not only make diversity as business issues, is essential WHY WE STILL NEED IT sense from a social point of view – it also in the transformational journey. We also PAGE 14 makes sense in pure business terms. believe that this shift will be beneficial PAGE 7 KEY FINDINGS from a financial point of view and support CREATING THE INDEX Unfortunately, even though we hold the corporate world in adapting to new PAGE 20 this knowledge, change is coming too markets and new challenges. Innovation and PAGE 8 TOP THREE COMPANIES slow. Waiting another two centuries for creativity are examples of essential building OUR GOALS IN THE INDEX gender equality, as predicted by the World blocks in our society that prosper when Economic Forum, is too long! driven by diverse teams. Therefore, we (still) PAGE 22 believe that the SHE Index powered by EY PAGE 9 Even in our country, gender differences is an essential tool in benchmarking and TWO COMPANIES WORKING EXECUTIVE SUMMARY and lack of diversity and inclusion, is visible. driving change. We believe that measuring, TOWARDS GREATER GENDER While Board of Directors in listed companies sharing, and reporting, reinforced by bold PAGE 10 EQUALITY are required to have 40% or more women, leadership, will support equality at all levels HOW TO READ THE SHE INDEX the number of female leaders has not including top management, thus, reflect the PAGE 24 changed significantly during the last demographic harmony of our population and PAGE 11 THE APPENDIX 10 years. the admissible work force. WHY
It’s time to walk the talk and agree that actions do speak louder than words!
4 5 CREATING THE INDEX
When we first set out to create the SHE Index nizing that lack of gender balance and lack powered by EY, our goal was to find a way to of diversity is a common business issue – document how far individual companies had not linked to the size of the company. come with regards to gender balance, espe- cially at leadership level. • In addition to reporting the numbers, the Index offers an incentive for organiza- Thus, we wanted to create an index that tions to create change within their business, would reflect the true status of gender equali- as the Index measures the actions compa- ty in corporate life. In addition, we wanted to nies have taken to improve gender equality. find a way of understanding the underlying We trust that these actions will form the factors in achieving progress with respect to basis for a wider talent base to be consid- equality. The first Index was limited to the ma- ered when future leaders are identified. jor listed Norwegian companies. The number We have therefore shifted the weighting, of participating companies participating in the whereas 40% of the index account for the Index this year, has almost quadrupled from actions taken by the companies vs. previous the start in autumn 2018. indexes applying 20%. This allows us to see the current situation merged with a peek This edition has been slightly changed vs. pre- into the future. vious editions, partly due to feedback from our reference group. The changes are: Many companies have shown remarkable progress in changing what has been a work • Highlighting the overall D&I agenda by cat- culture for decades. Most importantly, we egorizing the wider topic, hence, embedding need to see the willingness and the action to age, race, ethnicity, disability, religion, sexual create a better and more diversified future, preference – in addition to gender, thus, fully recognizing that change takes time. recognizing that gender is the common denominator in all diversity categories. We In the appendix you will find useful informa- have also stressed that without inclusion, tion about the questionnaire and a full over- the gain from diversity is not recognized. view of the composition and weighting of the Index. As in previous indexes, we would like • Opening the index for a wider community to stress the fact that we fully depend on the thus measuring not only the developments information shared by the participating com- within the largest companies. This is recog- panies. We do not audit the information.
6 7 OUR GOALS EXECUTIVE SUMMARY
OUR AMBITION SUPPORTING AN We are proud to announce that we have had a By developing and sharing the SHE Index EMPOWERING ENVIRONMENT 7% increase in the number of companies that have powered by EY we strive to accelerate Leaders who are willing to acknowledge the joined the SHE Index powered by EY since the change both with respect to gender equality need for change, and who show willingness to previous report in the autumn of 2019. and diversity as such. We encourage private create an environment that is empowering to and institutional investors to look out for all, also create trust. Employees who feel trust 72% of the companies that participated in the last gender balance at all levels, when considering and support from their leaders, are more report, participated again this time. At the very top their portfolio. prone to excel in their work and thus creating of the list with the highest scores, we have Making more value for the company. Waves. This company is followed by Telenor and SUPPORTING BOLD LEADERSHIP OBOS coming in third. We want to see leaders who are willing and INSPIRATION INTERNALLY able to define new strategies, set goals and AND EXTERNALLY The average score shows that women constitute implement practices that will contribute to The Index measures the practices imple- 39% of Board of Directors, but only 22% of the CEOs. diversity and equality. mented for change. Seeing how companies Furthermore, 31% of top management are women, put work and effort into ensuring equality is and of Management that reports to top management ENCOURAGING TRANSPARENCY inspiring. Not only for the company itself, but women are at 36%. 73 out of the total of 98 companies By being part of the SHE Index powered by also for other companies, for their employees have a Gender Equality Policy. Regarding sectors, the EY, the companies have accepted to parti- and for the future leaders and workers Telecommunications, Media & Entertainment sector cipate knowing that the scores will be made of tomorrow. has the highest overall score with 72 points on average. available to the public. We trust that this also drives change internally within the organiza- The following three sectors are Banking & Capital tion, recognizing the steps needed to support Markets, Construction & Real Estate and Insurance the business case of gender equality. Trust all with 67 points (small decimal variations separate and transparency are key components these three). of change.
WHAT IS MEASURED, CAN ALSO BE CHANGED. Numbers do not lie and can form a valuable basis for change. We trust that the Index and the individual scores support companies in moving away from practices that do not sup- port equality – towards constructive practic- es supporting equality, diversity and inclusion at all levels.
8 9 HOW TO READ THE SHE INDEX WHY?
We do of course offer full transparency with This year, we’ve made some important We have adjusted the weighting of the Index because we want to have respect to the framework, the questionnaire changes to the SHE Index: more focus on the policies and practices that will create a long term change. and how the Index score is calculated. We believe that change takes time, and we should pay more attention to We’ve added a whole new General Diversity & the work that is being done to create positive changes for diversity However, we will only disclose one single Inclusion category, to also capture this wider and inclusion. figure per participating company – the Index view which is so important to gender equality. score. Other information from the detailed For the Index to stay relevant in the years to come, we had to make this questionnaire (see appendix) will be used in We’ve added and refined the survey questions, important change. These are the most important consequences: an aggregated and anonymized way to high- and we’ve included descriptions to the ques- light certain topics and to analyze the under- tions, to fully capture gender equality perfor- • You should not compare the SHE Index scores from 2019 with the lying drivers to change. mance. scores from the SHE Index 2020. The two Indexes are based on different questions and the score is weighted differently between the two. For this reason, we cannot say whether a score has become better or worse. It just doesn’t make any sense to compare the two scores. THE INDEX SCORE Based on feedback from participating companies, the most important change to this year’s index is that we’ve changed the index score weighting. The SHE Index has two focus areas. 60% of the THE CURRENT STATE OF GENDER BALANCE score is made up of the numbers that represent the current state WITHIN THE COMPANY of gender balance within the company. The key indicator in the SHE Index Powered by EY is the gender The remaining 40% measures the initiatives that the company has put in place to increase gender balance at Board Level and the top three levels of the company: equality and embed D&I in the corporate culture. This is a change from the previous index where this was 80/20. 1. Board of Directors
2. Chief Executive Officer
3. Top Management reporting directly to the CEO
4. Management Reporting Directly to Top Management
5. All employees
60% 40% INITIATIVES TO INCREASE GENDER DIVERSITY 40% of the score is based on measures and policies that have been put in place to achieve gender equality and supporting the D&I agenda. These measures can relate to several initiatives taken by the company, like for example initiatives towards gender diversified hiring practices, leadership programs and mentorship programs. CURRENT STATE EQUALITY OF GENDER BALANCE INITIATIVES
10 11 RANK ORGANIZATION SCORE RANK ORGANIZATION SCORE 1 Making Waves 95 50 Crayon 66 2 Telenor 92 51 EY 66 3 OBOS 91 52 Lundin Norway 63 4 Otiga Group 91 53 Techstep 63 5 Schibsted 90 54 Clas Ohlson 62 6 Sparebanken Sogn og Fjordane 90 55 Cognite 62 7 Entra 89 56 JM 62 8 Grieg Seafood 88 57 Nordea Bank 61 9 Nordea Liv 88 58 Norconsult 61 10 Equinor 88 59 Bouvet 59 11 Sparebanken Vest 87 60 Veidekke 59 12 SKAGEN Fondene 87 61 Itera 58 13 Computas 87 62 ABG Sundal Collier 58 14 Compass Group Norway 83 63 Scatec Solar 58 15 Danske Bank 83 64 Sopra Steria 57 16 DNB 83 65 Aker BioMarine 57 17 Fjordkraft 81 66 Hurtigruten Sjø 56 18 ManpowerGroup 81 67 PGS 55 19 KLP 81 68 SKULD 54 20 Virke 80 69 Aker Solutions 54 21 Posten 80 70 Visma 54 22 Norske Shell 79 71 Amedia 54 23 Sogeti Norge 79 72 HELP Forsikring 52 24 Wallenius Wilhelmsen Logistics 78 73 Grieg Shipbrokers 51 25 Gjensidige 78 74 Dr.Dropin 48 26 Vinmonopolet 78 75 Orkla 48 27 Sweco Norge 77 76 Norwegian Hull Club 47 28 Grieg Star Group 77 77 RiksTV 46 29 Norsk Hydro 77 78 TOMRA 45 30 Storebrand 77 79 Ferd 44 31 Deloitte 77 80 B2Holding 44 32 Norsk Tipping 76 81 Aker BP 43 33 Gelato 76 82 Komplett Services 43 34 Statkraft 74 83 PwC Norge 41 35 TV 2 73 84 Jula Norge 38 36 EGGS Design 73 85 Advokatfirmaet Thommessen 38 37 Creuna 72 86 Klaveness 38 38 TietoEVRY 72 87 Nordic Semiconductor 37 39 Yara 71 88 Aker Energy 36 40 Accenture 70 89 Europris 36 41 AMESTO Group 69 90 Kværner 35 42 Coop Nordland 69 91 Eplehuset 34 43 Arcus 68 92 Energima 34 44 Sparebanken Møre 68 93 Caverion 33 45 Flytoget 68 94 EY Skye 33 46 Kremmerhuset 68 95 Scania Norge 29 47 Borregaard 67 96 Formuesforvaltning 28 48 Hurtigruten 67 97 Solstad Offshore 22 49 Avinor 66T 98 Jackon Holding 21 KEY FINDINGS SHE INDEX 2020 39% OF BOARD MEMBERS ARE WOMEN
22% OF CEOS ARE WOMEN
31% OF TOP MANAGEMENT ARE WOMEN
36% OF DIRECT REPORTS TO TOP MANAGEMENT ARE WOMEN
14 15 23% 53% 70%
of surveyed companies of surveyed companies of surveyed companies have a balanced consider gender in at least have an explicit gender top management some vendor selection balance target for processes, but only 11% management positions have a written policy for doing so in all processes
74% 59%
of surveyed companies of surveyed companies have a Gender Equality track the share of women Policy among identified high potential employees
16 17 AVERAGE SCORE PER SECTOR
TELECOM, MEDIA & ENTERTAINMENT 72pt
BANKING & CAPITAL MARKETS 67pt 72pt 6 Total number of companies TELECOM, MEDIA & ENTERTAINMENT CONSTRUCTION AND REAL ESTATE 67pt in the sector Telecom, Media & Entertainment has the highest 50% average scores of all sectors, with few companies of the companies in the industry having low SHE Index scores. has a balanced top management INSURANCE 67pt
TOP COMPANIES: TELECOM, MEDIA & ENTERTAINMENT SCORE RANK TECHNOLOGY 66pt Telenor 92 2
Schibsted 90 5 PROFESSIONAL FIRMS & SERVICES 64pt Norsk Tipping 76 32
TRANSPORTATION AND HOSPITALITY 62pt
SECTORS ENERGY 61pt As more companies join the SHE Index powered by EY it will be possible for companies to compare their results with companies in the same sector. Companies that have a high score in the Index, can therefore contribute to creating a positive change in the sector in MANUFACTURING 53pt general as they set a standard for equality and diversity.
CONSUMER PRODUCTS AND RETAIL 51pt
AVERAGE SCORE 63pt
18 19 COMPANIES 01. MAKING WAVES
First year participant Making Waves are at the very top THAT HAVE SHOWN of the index. REMARKABLE RESULTS IN THE SHE INDEX
02. TELENOR
While Telenor has participated in every edition of the index, this is their highest ranking to date.
03. OBOS
OBOS maintains a strong position with the third best index score, for the third time in a row.
20 21 SPAREBANKEN SOGN OG FJORDANE
DIVERSITY – A FUNDAMENTAL PART Trond Vinje, director of HR OF THE COMPANY’S STRATEGY
Sparebanken Sogn og Fjordane was the winner of – It has to be expected from the board, the leader- TIETOEVRY SHE Index 2019 H2. ship and the mid-level leaders to take responsibility in creating change in our society and within our Being at the top of SHE Index is a result of a stra- organization. tegic process including policies implemented over time and a diversified recruitment process. Rostad Næss believes it is absolutely crucial to have diversity and gender equality as a part of the DIVERSITY AND TECHNOLOGY – To create more gender equality within an company’s strategy, and to remember that diversity organization is not a quick fix. It is not something if profitable. that can be managed through one single incentive. TietoEvry is one of Norway’s biggest technology company for several years. They believe that It demands work and effort over time, says Eirik Stringent recruitment process companies and employs 1100 women. “What gets measured, gets done” and they have Rostad Ness, director of HR at Sparabanken Sogn The company has to be critical while reviewing put in place several incentives for management, og Fjordane. their own recruitment process, and whether they – I am proud to say that I have so many for example leadership programs for women and are doing enough to have women apply for leading female colleagues in Norway, but our industry is minorities. Their ambition is to close the gap in The fact that Sparebanken Sogn og Fjordane has positions. dominated by men. Therefore, our responsibility income between men and women within had gender equality as a part of the company’s cul- is even more important in our recruiting of the company. ture for many years, is also one of the reasons why Furthermore, the company has to review the new talent, says Trond Vinje, director of HR they now have had such great success. company’s policies towards their employees, and at TietoEvry. - I believe it is crucial to be transparent about the consider if there are structural differences between problems, the objectives and incentives in order Female leaders men and women. Equal pay also needs to be a natu- The company has been working towards their to achieve our common goals. The SHE Index One of the most important incentives by Spare- ral part of the annual settlements. goal of greater gender balance within the offers this possibility, says Vinje. banken Sogn og Fjordane is their focus on recruiting women to top positions within the organization. Rostad Næss explains that diversity will be an im- portant factor for the company in the years to come. – We have reached the goals we have set for ourselves in regards to women in leading positions. – Only through diversified teams that are inclusive, But we have our challenges as well, and we still have will we be able to be the innovative company that work to do in regards to equal pay. we strive to be.
Rostad Næss explains that their company also is working towards creating local indicators to moni- tor changes in salary over time.
22 23 APPENDIX
The gender distribution for the BoD and the top IN THIS SECTION YOU WILL FIND 60% three management levels • The questionnaire • The weighting • Q&A
THE SHE INDEX CONSISTS OF TWO MAIN CATEGORIES
CATEGORY A The gender distribution for the BoD and the top three management levels
CATEGORY B A questionnaire where each company describe its policies and targets in place A questionnaire where It is important to remember that each company describes its the numbers provided for the Index are provided by the companies themselves. 40% policies and targets in place We assume that the companies act in good faith and provide the correct numbers.
24 25 CATEGORY A
ACTUAL GENDER BALANCE
Board of Directors 6%
INDEX SCORE CEO and Top Management 28,8%
For the calculation of the SHE Index score for each company, we use the formula in the illustration below. E.g. 45-55% women and men at each management level gives 100% score in this section. Gradually reduced, depending on the numbers, from 90% towards 10% share of women and men - which would give a 0% score. In addition, if any category has a difference of one person between Direct reports to 22,8% men and women, this is counted as perfectly balanced. Top Management
All Employees 2,4%
TOTAL 60%
26 27 CATEGORY B
OTHER CATEGORIES
POLICIES AND MEASUREMENT Which policies the company has implemented, and how gender balance and equality is being tracked in the company.
ACTIONS Which specific actions the company has implemented to improve gender equality
TALENT AND RECRUITMENT Which initiatives, policies and actions have the company implemented to recruit, retain and develop talent of both genders?
GENDER PAY GAP How much do women earn on average in the company compared to men?
GENERAL DIVERSITY AND INCLUSION Which general D&I policies have the company implemented? This is a new category for the 2020 edition of SHE Index and was included to emphasize that in order to improve gender equality, diversity and inclusion in general must also be in focus.
28 29 CATEGORY B CATEGORY B
THE WEIGHTED QUESTIONS Q&A
Policies and Measurement Why does the board level just count for 6% in the Index? Does your company have a written policy about gender equality? When it became the law in Norway to have minimum 40% female representation at the BoD, it was expected Does your company have an explicit gender balance target for management positions? that this would also increase the number of female leaders. This has however not happened, and the percentage Are all managers in your company measured on the gender balance in their department/team? at top management level has not increased much over these years. Although some BoD’s actively promote gender Are all members of your company’s top management team measured on the gender balance in their department? equality we believe that the top management in general are more active in setting the agenda within a company, Who is ultimately accountable for improving gender balance in your company? than the BoD. How does your company measure progress on gender equality initiatives?
Actions Why is the CEO and top management level weighted only 28,8% and their direct Does your company have specific policies for considering the gender equality reports almost as much (22,8%)? Isn’t top management much more significant? of vendors or contractors in selection processes? We believe that the first major changes in most companies will come at the level below top management, which of- Is your company committed to specific actions to improve gender balance ten will be the recruitment base for top management. For this reason we consider it important to highlight this level, among all employees? (and if so, what are they?) despite a lower managerial influence. Is your company committed to specific actions to improve gender balance in management positions specifically? (and if so, what are they?) What parental benefits do you as a company provide to your employees beyond the legally required minimums? Does your company have instructions for following up employees on parental leave? Some companies have the same score. Does your company have a process for following up employees returning from parental leave? Why not in alphabetical order when that happens?
We chose to publish the Index score without decimals. Where several companies have the same Index score there Talent and Recruitment are only minor differences, but we have ranked them by the decimals. Is improving/maintaining gender balance systematically considered when promoting or recruiting candidates to top management positions? Does your company have a practice of equal representation of men and women in the You want to expand the number of companies participating in the index. decision-making group when recruiting or promoting candidates to top management positions? What are your expectations in regards to companies participating in the Index? When recruiting external candidates for management positions, does your company require In the first Index in the autumn of 2018 26 of Norway’s largest listed companies participated. This was just the start. a gender diverse pool of candidates from internal/external recruiters? Today we have almost four times the initial number of participants. We are aiming for an increasingly higher number Does your company track the share of women among identified high potential employees? of participating companies, and we are planning to make the Index a global Index for gender equality within the Does your company have programs or initiatives for attracting candidates of both genders next years. to apply for positions in your company?
Gender Pay Gap Is your company committed to actions to reduce disparities in the average pay between women and men? (and if so, what are they?)
General Diversity & Inclusion Does your company offer Diversity and Inclusion (D&I) training for all employees? Does your company offer specific Diversity and Inclusion (D&I) training for all managers? Does your company have a written policy against workplace discrimination? Does your company have an established process for anonymously reporting workplace discrimination?
30 31 32 www.sheindex.com