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Work-related gender gaps persist but solutions are clear

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A future of work  in which women will no longer lag behind men is within reach, but it will take a quantum leap, not just hesitant incremental steps, to get there, according to a new International Labour Organization (ILO) report published for International Women’s Day  on 8 March.

“We need to make it happen, and the report, A Quantum leap for gender equality: For a better future of work for all , provides a way forward,” said Manuela Tomei, Director, ILO Conditions of Work and Equality Department.

The report is the culmination of five years of work under the ILO’s Women at Work Centenary Initiative .

It finds that in the last 27 years the difference in the employment rates for men and women has shrunk by less than two percentage points. In 2018, women are still 26 percentage points less likely to be in employment than men. This contrasts with the findings of an ILO-Gallup 2017 global report  on women’s and men’s preferences about women’s participation in paid work, which found that 70 per cent of women prefer to have a job rather than staying at home and that men agree.

In addition, between 2005 and 2015, the ‘motherhood employment penalty’, the difference in the proportion of adult women with children under six years in employment, compared to women without young children, increased significantly, by 38 per cent.

Moreover, women are still underrepresented at the top, a situation that has changed very little in the last 30 years. Fewer than one third of managers are women, although they are likely to be better educated than their male counterparts. The report shows generally that education is not the main reason for lower employment rates and lower pay of women, but rather that women do not receive the same dividends for education as men.

There is also a ‘motherhood leadership penalty’: only 25 per cent of managers with children under six years of age are women. Women’s share rises to 31 per cent for managers without young children.

The gender wage gap remains at an average of 20 per cent globally. Mothers experience a ‘motherhood wage penalty’ that compounds across their working life, while fathers enjoy a wage premium.

“A number of factors are blocking equality in employment, and the one playing the largest role is caregiving,” said Tomei. “In the last 20 years, the amount of time women spent on unpaid care and domestic work has hardly fallen, and men’s has increased by just eight minutes a day. At this pace of change it will take more than 200 years to achieve equality in time spent in unpaid care work.”

The report sets out laws and practices that are changing this dynamic, for a more equal sharing of care within the family, and between the family and the State. “When men share unpaid care work more equally, more women are found in managerial positions,” added Tomei, highlighting the role of men in creating a more gender-equal work of work.

The report also includes findings from ‘real time’ data, gathered by the professional networking website LinkedIn from five countries, covering 22 per cent of the global employed population in three different regions. This joint ILO-LinkedIn collaboration found that women with digital skills – currently a requirement for the most-in-demand and highest paying jobs in science, technology, engineering and maths-related (STEM) – are only between a third and a quarter of LinkedIn members with such skills. However, it also revealed that the women who reach director-level positions get there faster, more than a year earlier than their male counterparts.

The Quantum Leap report shows that achieving gender equality will mean policy changes and actions in a range of mutually reinforcing areas, and it points to measures that can lead towards a transformative and measurable agenda for gender equality. The path of rights is the foundation for a more equal world of work, including the right to equal opportunities, the right to be free from discrimination, violence and harassment, and to equal pay for work of equal value.

A future of work where everyone can care more, with time to care and inclusive care policies and structures is also strongly advocated in the report. A more caring future of work will also mean significant employment creation. The need for universal social protection and a sound macroeconomic framework is also addressed. With the wide-ranging global transformations underway – technological, demographic and climate change – the report calls for greater efforts to engage and support women through work transitions. Increasing women’s voice and representation will also be essential to ensure all the other paths are truly effective.

“We will not get the future of work with social justice we need unless we accelerate action to improve progress on gender equality at work. We already know what needs to be done,” said ILO Director-General Guy Ryder. “We need to implement a transformative agenda that includes enforcement of laws and regulations – perhaps we may even need to revisit those laws and regulations – backed by investment in services that level the playing field for women, such as care and social protection, and a more flexible approach to both working hours and working careers. And there is the persistent attitudinal challenge of attitudes to women joining the workforce and their place in it.”

“We know much more now about gender gaps and what drives them, and what needs to be done to make meaningful progress on gender equality in the world of work – the path is clear,” said Shauna Olney, Chief Gender, Equality and Diversity & ILOAIDS Branch. “With commitment and courageous choices, there can be a quantum leap, so that the future of work does not reinforce the inequalities of the past. And this will benefit everyone.”

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Financing Options Key to Africa’s Transition to Sustainable Energy

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A new whitepaper outlining the key considerations in setting the course for Africa’s energy future was released today at the 2021 Sustainable Development Impact Summit. The report, “Financing the Future of Energy,” outlines Africa’s electricity landscape and financing options in context with the global drive to reduce carbon emissions.

Africa’s power sector will play a central role in the transition from fossil fuel-driven power generation to a renewable-strong energy mix. According to the whitepaper written in collaboration with Deloitte, the migration to a multi-stakeholder-oriented net-zero power grid is being driven by “the 3Ds:”

  • Decarbonization: moving from fossil fuel sources to renewables
  • Decentralization: Shifting from centrally managed generation, transmission, and distribution to decentralized systems
  • Digitalization: Leveraging digital technology to advance the transition

The report contends that new coalitions and investments with developed nations and NGOs including the World Economic Forum must coordinate and enable countries to leapfrog existing technologies and infrastructure.

“The need for digitally smarter utility platforms and sustainable development programs will guide global leaders in helping to shape equitable and inclusive recovery programs,” said Chido Munyati, Head of Africa at the World Economic Forum. “The entire continent remains vulnerable, but this whitepaper offers a view on what are viable financing options that exist today for clean energy sustainability and equitable recovery for all of Africa.

Funding will be the biggest hurdle to ensuring Africa’s sustainable transition to Renewables at scale; there are many financing solutions available,” said Mario Fernandes, Director, Africa Power Utilities and Renewables, Deloitte. “Africa’s winners will be the ones that are able to leverage what exists while creating an enabling environment for the private sector through a Renewables Energy Investment facility.”

Case studies in China and India showed that financing solutions for a clean energy transition often involve long cycles. Economic booms in these countries resulted in a significant shift in carbon emissions. Since similar economic booms are expected across Africa, the report highlights how crucial it is to anchor growth in technologies that can enable lower emissions.

While Africa’s contribution to greenhouse gas emissions from fossil fuel significantly lags behind those of other continents, it still carries a huge potential to accelerate the transition to a net-zero future. Currently, half of the continent lives without adequate access to electricity. As energy demands increase, the energy gap could be bridged through clean energy alternatives, if the financing solutions are employed now.

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Action on Trade is Necessary for Businesses to Unlock Net Zero Targets

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For businesses to reach their emission targets, the global trading system needs to adapt, and businesses are calling for the change.

These are the main findings of the Delivering a Climate Trade Agenda: Industry Insights Report released today by the World Economic Forum, in collaboration with Clifford Chance.

The six-month study is based on research and interviews with global companies, across sectors including transport, energy, manufacturing, and consumer goods. The objective of the research process was to identify necessary changes to the current global trade system and how to better incentivize and accelerate decarbonization. The resulting study outlines eight key actions that, if taken by governments and businesses, could make global trade a better enabler of climate action.

Sean Doherty, Head of International Trade and Investment said: “Traditionally, trade and climate policy-making has happened in separate silos. The urgency of the climate crisis calls for us to break down these silos through public-private cooperation in order to accelerate emissions reductions while achieving prosperity for all. The good news for policy makers is businesses are ready and willing to support this change.”

Jessica Gladstone, Partner at Clifford Chance said: “International trade will play a key role in achieving a just transition to a low-carbon sustainable global economy. Businesses stand ready to lead in this transition, but governments can support by ensuring the right legislative and regulatory structures are in place. Our report explores global and domestic policy actions that can create climate-friendly trade that is fair, transparent, and has technology and innovation at its core.”

Interviews revealed the following ways for trade to support businesses to decarbonize and grow sustainably:

  • Tariff reductions on key goods
  • Addressing non-tariff distortions in parallel
  • Phasing out fossil fuel subsidies
  • Building coherence around carbon-based trade policies
  • Supporting trade in digital and climate-related services
  • Encouraging climate-smart agriculture
  • Aligning trade agreements with climate commitments
  • Facilitating green investment

The chart below provides examples of how the global trading system can through continued dialogue between governments and the private sector put trade to the service of climate action.

The report includes a jointly-authored foreword by the World Trade Organization (WTO) Director General Ngozi Okonjo-Iweala and the United Nations Framework Convention on Climate Change (UNFCCC) Executive Secretary welcoming the insights from business. Major intergovernmental meetings will be held under both organisations in the last quarter of this year.

Business can take steps to encourage alignment of trade rules with climate action. The Forum is today launching a two-year work programme – titled Climate Trade Zero – to support public and private exchange on these issues as part of building a more sustainable trading system.

Many companies also recognized that the transition is taking place at different speeds and levels of intensity across countries and sectors. Interviewees highlighted the importance of providing support and incentives to developing countries, and to supply chain partners in developing countries, to undertake the investments necessary to reduce their emissions.

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Appliance standards and labelling is highly effective at reducing energy use

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Policies that introduce minimum efficiency performance standards and energy-consumption labelling on appliances and equipment have led to reduced power consumption, lower carbon emissions, and cost savings for consumers, according to analysis published today by the IEA and the 4E Technology Collaboration Programme (4E TCP).

The report’s findings are drawn from nearly 400 evaluation studies covering 100 countries, including those with the longest running and strongest appliance policies, such as China, European Union, Japan and the United States.

“The findings from the study are important as they provide evidence that standards and labelling are highly effective policy instruments that bring benefits to consumers as well as lower emissions and lower energy demand,” said Brian Motherway, the Head of Energy Efficiency at the IEA.

The study shows the policies have had significant positive impacts:

  • In countries with long-running policies, appliances are now typically consuming 30% less energy than they would have done otherwise.
  • In the nine countries/regions for which data were available, such programmes reduced annual electricity consumption by a total of around 1 580 terawatt-hours in 2018 – similar to the total electricity generation of wind and solar energy in those countries.
  • The programmes that have been operating the longest, such as those in the United States and the European Union, are estimated to deliver annual reductions of around 15% of their current total national electricity consumption. This percentage increases each year as more of the older, less-efficient stock is replaced with equipment that meets new higher efficiency standards.
  • These energy savings represent a significant financial boon for businesses and householders. In the United States alone, utility customers are now economising USD 60 billion each year, or USD 320 per customer.
  • Also, the United States, European Union and China together are avoiding annual CO2 emissions of more than 700 million tonnes, equivalent to the total energy-related emissions of Germany.
  • Well-designed policies encourage product innovation and lead to economies of scale, which reduces the cost of appliances even without accounting for the efficiency gains. For example, in Australia the sticker price of appliances has typically fallen 40% over the last 20 years, while average energy consumption has fallen by a third.

“The message is simple: expanding standards and energy efficiency labelling programmes makes the energy transition challenge easier, more affordable and become a reality,” said Jamie Hulan, the Chair of the 4E TCP.

The IEA will continue to collaborate with 4E TCP to enhance and promote the use of such policies. 4E TCP is an international platform for fourteen countries and the European Union to exchange technical and policy information focused on increasing the production and trade in efficient end-use equipment.

Ahead of this November’s COP26 Climate Change Conference, the IEA is working with the UK Government via the Super-Efficient Equipment and Appliance Deployment (SEAD) initiative to coordinate and improve international action on product energy efficiency. The United Kingdom is leading the COP26 Product Efficiency Call to Action, which aims to double the efficiency of key global products by 2030, initially focusing on four key energy-consuming products: air conditioners, refrigerators, lighting and industrial motors systems. The IEA is supporting the implementation of this work and helping expand the number of countries ready to make this commitment.

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