Shell UK publishes 2020 diversity pay gap report
Nov 25, 2020
London - The Shell Group of Companies in the UK (Shell UK) has today published its first diversity pay gap report. For the first time, this report voluntarily includes data on our ethnicity pay gap, as well as on our gender pay gap which we have reported since 2017. The report shows that Shell UK has an average gender pay gap of 18% in 2020, down from 18.7% in 2019. In our first year of reporting, our average ethnicity pay gap is 8.5%.
“While we are making progress in building an inclusive workplace for all, we are not yet where we need to be,’’ said Sinead Lynch, Shell UK Country Chair. ‘’In a challenging year we have remained focused on closing the gender pay gap. At the same time, we recognise that to create a truly diverse culture in Shell we need to look beyond gender, which is why we are publishing our ethnicity pay gap data for the first time. By being transparent about our performance and holding ourselves to account we want to build a culture that attracts and retains the best talent for Shell in the UK.’’
‘It is key for all employers to improve equality of opportunity in the workplace’ said Sandra Kerr, Race Director at Business in the Community. ‘By publishing their ethnicity pay gap, Shell demonstrates its commitment to transparency and determination to accelerate change to address inequalities. We urge more companies to follow.’
A gender pay gap is defined as the difference in the average pay and bonuses of all men and women across an organisation. Shell UK has a gender pay gap because we have fewer women than men in senior leadership positions, and fewer women in specialist roles attracting higher levels of pay. Our gender pay gap also reflects wider societal issues such as relatively fewer women studying science, technology, engineering and mathematics subjects at university.
The improvement in our gender pay gap this year is mainly because of a higher number of women in our upper and upper middle pay quartiles, that is women in senior positions. Shell UK achieved its ambition to have 30% female senior leaders in the UK by 2020, reaching 32.6% this year. We are on track to grow this to 35% by 2025.
The ethnicity pay gap shows the difference in the average pay and bonuses between Black, Asian and Minority Ethnic and non- Black, Asian and Minority Ethnic employees across an organisation, expressed as a percentage of average non- Black, Asian and Minority Ethnic pay. The main factor contributing to our ethnicity pay gap is that there are proportionately fewer Black, Asian, and Minority Ethnic employees in senior roles which attract higher pay and higher bonuses.
We are taking action to increase the representation of ethnic minorities at Shell in the UK in line with the relevant UK working population. This includes an aim to increase the number of employees recruited from Black, Asian and Minority Ethnic backgrounds and the introduction of recruitment aspirations for Black representation. We will work towards achieving this by expanding the reach of our recruitment campaigns to attract more diverse applicants through external advocacy and outreach work and by sponsoring opportunities for people from Black, Asian and Minority Ethnic backgrounds. We are also putting in place new development programmes to support more of our existing Black, Asian and Minority Ethnic employees to progress senior levels, including through mentoring and providing greater visibility of Black, Asian and Minority Ethnic role models.
To read the report, go to www.shell.co.uk/diversitypay
Notes for editors:
- The report has been produced in accordance with the guidance on managing gender pay developed by the Advisory, Conciliation and Arbitration Service (Acas).
- Men have traditionally made up the majority of the workforce in the oil and gas sector. This is reflected across each of the Shell companies in the UK and across Shell UK, where 66% of our employees are male and 34% female.
- Bonus awards are gender neutral. However, in some businesses in the UK, such as trading, we see a greater bonus gap because of higher variable pay, reflecting market practice in that sector, and fewer women in trading roles. These bonuses have a significant impact on both our UK average bonus gap and the average bonus gap for specific businesses.
- In fulfilling the UK regulatory requirements, Shell UK’s 2020 diversity pay gap report sets out specific gender pay gap data for the seven UK employing entities with 250 or more employees on April 5, 2020: Shell UK Limited, Shell International Trading & Shipping Co. Limited, Shell International Petroleum Company Limited, Shell International Limited, Shell Information Technology Limited, Shell UK Oil Products Limited and Shell Energy Retail Limited.
- The report also sets out the Shell UK consolidated pay and bonus gap data, which includes all nine employing entities in the UK, in order to provide a more meaningful representation of our UK organisation.
- The 2020 Ethnicity Pay Gap calculation uses the same methodology as gender pay gap reporting, although is based on voluntary declarations of ethnicity by Shell UK employees. The 2020 ethnicity pay gap is based on 75% of Shell UK employees declaring their ethnicity.
- Find out more about diversity and inclusion in the UK.
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