Why Equity, Diversity & Inclusion (EDI) is important for Energy Systems Catapult

Energy Systems Catapult exists to accelerate Net Zero energy innovation. We believe innovation thrives in diverse and inclusive environments. Fostering equity, diversity and inclusion in the energy sector and research and innovation communities will lead to more and better innovation towards Net Zero – directly contributing towards our core mission.

It will also make this innovation more likely to lead to positive outcomes for all. Creating a diverse, inclusive innovation community will help us better understand the impacts of innovations on different groups and shape innovation to take the needs of those groups into account.

Inclusion is vital in decarbonising the whole energy system – we can’t leave anyone behind. To this end, we will actively design and promote solutions that increase inclusion in the energy transition. Together we are aiming for a better future energy system – one that is decarbonised, inclusive, and works for all.

This is why EDI is important for the Catapult – it enables more effective innovation towards a Net Zero energy system that works for everyone. Our ambition is that Energy Systems Catapult is the place where people can do the most important work of their career. To enable that, we want the Catapult to be a fulfilling and enjoyable place to work, where everyone who works here feels valued and respected.

This is the right thing to do, but also will have benefits for us as an organisation. Diverse and inclusive organisations have been shown to be more innovative and more likely to achieve their goals.

People will perform better in their roles if their unique perspectives are valued, and they are given fair opportunities to make the most of their potential. People who feel valued, understood and fairly treated are also more likely to want to contribute at the Catapult and will work to make it a better organisation.

Diverse perspectives will enable us to understand the world better and drive change more effectively. They will help us identify our blind spots and address them – ensuring we remain a healthy and effective organisation.

This is why EDI is important for the Catapult – it ensures our people are valued and the Catapult is a great organisation to be part of.

Gender pay gap

Energy Systems Catapult has undertaken its first gender pay gap review, carried out by an external organisation. Mandatory Gender Pay Gap reporting applies to all employers in England, Wales and Scotland with at least 250 employees as of the 5th of April 2023 snapshot date. The Catapult reached 250 employees in March 2023.

It needs to be noted that a gender pay gap is a measure of the difference in the average pay of all men and of all women in an organisation, regardless of the roles that they do. It is not the same as an equal pay comparison, which directly compares the pay of two or more people carrying out the same jobs, similar jobs or work of equal value.

The information submitted by employers is published on the government website and calculations have been performed in line with associated regulations, which require the following to be calculated:

• Overall mean gender pay gap
• Overall median gender pay gap
• Overall mean bonus gender pay gap
• Overall median bonus gender pay gap
• Proportion of males and females that received a bonus payment
• Gender distribution across four pay quartiles, ordered from lowest to highest pay

The data used is a snapshot from April 2023, which is before the Catapult’s 2023 pay review had been processed.  It also needs to be noted that we have since changed our approach to ‘job families’ across the business since this point in time.

Key findings

• There is no evidence that equal pay risk exists (i.e. men and women undertaking like-for-like roles are paid materially different salaries) although this project has a gender pay remit and does not extend to a full equal pay audit.
• Mean hourly rates favour males by 15.07% (national mean is 13.9%).
• Median hourly rates favour males by 21.82% (national median is 14.3%).
• This may be due to underrepresentation of females found in the top two pay quartiles.
• Hourly rates for 20–30-year-olds favours females and then this switches to males for all other age groups. This is typical of the external market.
• The mean and median for bonus gender pay gap is in line with national averages.
• There were no notable differences between males and females for bonus payouts.
• Our third-party consultant was encouraged by our results as this is the first time we are reporting.

What is driving our gap?

• Underrepresentation of females in the top two pay quartiles – 59% of the male population are found in Q3 and Q4, as opposed to 35% of females.
• Differences in gender representation in different job functions – our pay ranges are all informed by both the market and function e.g. in specialist areas, the recruitment pool is more male-dominant.
• External market and pipeline of females in our industry – there is an estimated 60/40 split between males and females within the wider market context. This has increased over recent years but a key driver in our data seems to be that there are more males in more senior positions, at higher pay, which may be reflective of the external landscape.

Recommended actions

It is noted that this is the first Gender Pay Gap report the company has produced, therefore it is an initial insight for the Catapult to work on over an advised period of three to five years. It should be recognised that the gap will not close within the first year and the below recommendations will be implemented across this period to ensure a proactive approach in closing the gender pay gap.

• Promotions: Track promotions by gender and ethnicity (where data is available) on a quarterly basis.
• Recruitment practices: Review overall recruitment approach and best practice as well as consider where vacancies are advertised to ensure an inclusive approach.
• Reward: Continue to ensure the reward framework is fair and transparent, supported by effective pay policies which are applied consistently and facilitate bias-free decisions.
• Retention: Create strategies which increase the opportunity for equitable career progression, helped by learnings from exit interviews and feedback across the business.
• Ways of working: Continue to proactively support flexible working at all levels across the organisation, such as offering flexible start and finish times, working from home, modernised buying and selling of leave and working reduced hours, through to promoting shared parental leave.
• Leadership commitment: Promoting gender pay equity is a priority for the Board and the Executive Team, and we will commit to a set of actions to try and address any disparities.
• Employee engagement: Continue to ensure employees feel heard and included through use of internal Listening Surveys, Town Halls and communities e.g. Equity, Diversity and Inclusion Advocates.