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AkzoNobel 2022 Gender Pay Report
Foreword
AkzoNobel is proud to be building a diverse and inclusive company where we can all perform at our best and support others in their success. By becoming a more inclusive employer, great people will want to work here who can help drive us forward and understand and anticipate the changing needs and expectations of our customers. “We are committed to fostering an inclusive environment where employees are rewarded equally, regardless of their gender – in addition to improving female representation, especially at senior levels in the organisation. To prevent a gender pay gap, we follow a rewards philosophy of globally structured compensation based on market references and performance.” (excerpt from 2022 Annual Report).
The historical gender imbalance which exists within some business areas continues to be an area of focus for all UK Management Teams. We have implemented initiatives to seek to address these imbalances where they exist. Equally, we acknowledge that real and long-term difference to the current gender pay gap will take time and as a company, we remain committed to continuing this journey.
Approach Taken
Under the requirements specified by UK legislation, we are required to report on the legal entities within our Group which have over 250 ‘UK employees’ (as defined in accordance with that legislation). The data provided in this report is based upon the snapshot date of 5 April 2022, and the 12-month reference period up to 5 April 2022 for the purpose of bonus analysis.
Statutory Disclosure
There are three legal entities within the AkzoNobel Group of companies which have over 250 UK employees (as defined in the legislation). These entities are Imperial Chemical Industries Limited (trading as ICI Paints AkzoNobel) (ICI), International Paint Limited (IPL) and J.P. McDougall & Co. Limited (JPM) The figures for ICI are as follows:
Mean Gender Pay Gap
ICI -5.22% (2021 : 1.36%)
Median Gender Bonus Pay Gap
ICI -11.6% (2021 : -5.9%)
Mean Gender Bonus Pay Gap
ICI 11.2% (2021 : 31.5%)
Median Gender Bonus Pay Gap
ICI 19.8% (2021 : 25.9%)
Proportion of employees receiving a bonus payment
Female Male Female Male
ICI 96.6% 95.8% 2021 97.7% 97%
Proportion of employees within each pay quartile
Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4
F M F M F M F M
ICI 36% 64% 21% 79% 36% 64% 39% 61%
Gender Pay Gap – Hourly Rate and Bonus
Across ICI, the 2022 gender pay gap is now below zero which highlights the gender diversity across the more senior positions.
Although the bonus gender pay gaps have reduced, we fully acknowledge that there is still work required to reduce it further. The emphasis continues to be a focus on increasing the proportion of females across both senior management and executive positions.
At a UK level, Talent Acquisition initiatives continue to focus on increasing the proportion of females who we attract and recruit across all levels of the business. These include:
- Ensuring job adverts are worded to be gender neutral.
- Investing in advertising our vacancies on female focused job sites
- Investing in our Women’s Inspired Network to develop, support and empower our female colleagues
- Promoting our flexible and hybrid working offerings
- Ensuring interview panels are gender balanced
- Educating hiring managers on unconscious bias
In addition to the steps above, the UK HR Leadership Team also review the exit interview and recruitment data on a quarterly basis to assess how our recruitment practices and work environment are contributing to our overall objective to increase female representation across the organisation.
I confirm that the gender pay gap calculations for Imperial Chemical Industries Limited are accurate and meet the requirements of the Regulations.
AkzoNobel 2021 Gender Pay Report
Foreword
‘We’re experts in making coatings, although that hardly begins to tell the whole story. We use passion for paint to make a difference – both big and small. The things our products can do may surprise you, whether they’re applied to boats, buildings, cars, planes, phones, walls or wood.’
‘We’re developing an increasingly engaged, diverse and capable workforce, with a focus on ensuring that management teams reflect the diversity of our workforce’1
The historical gender imbalance which exists within some business areas continues to form an area of focus for all UK management teams. We have implemented a number of initiatives to seek to address these imbalances, where they exist. Equally, we acknowledge that real and long-term difference to the current gender pay gap will take time and as a company, we remain committed to continuing this journey.
Approach Taken
Under the requirements specified by UK legislation, we are required to report on the legal entities within our Group which have over 250 ‘UK employees’ (as defined in accordance with that legislation). The data provided in this report is based upon the snapshot date of 5 April 2021, and the 12-month reference period up to 5 April 2021 for the purpose of bonus analysis.
Statutory Disclosure
250 UK employees (as defined in the legislation). These entities are Imperial Chemical Industries Limited (trading as ICI Paints AkzoNobel) (ICI), International Paint Limited and J.P. McDougall & Co. Limited. The figures for ICI are as follows: Mean Gender Pay Gap
Mean Gender Pay Gap
ICI 1.36% (2020 : 3.38%)
Median Gender Bonus Pay Gap
ICI -5.9% (2020 : -4.8%)
Mean Gender Bonus Pay Gap
ICI 31.5% (2020 : 31.4%)
Median Gender Bonus Pay Gap
ICI 25.9% (2020 : 19.8%)
Proportion of employees receiving a bonus payment
Female Male Female Male
ICI 97.8% 97.0% 2020 100% 99%
Proportion of employees within each pay quartile
Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4
F M F M F M F M
ICI 37% 63% 25% 75% 34% 66% 36% 64%
Gender Pay Gap – Hourly Rate and Bonus
Across ICI, the gender pay gap is now below 1.5% and this demonstrates the continued efforts to maintain a gender balanced approach to recruitment and career development.
With regards to the current bonus gender pay gap, it’s driven by the increased bonus opportunity as employees move into more senior positions – so as with most gender pay gap challenges the Company face, increasing the number of women in executive levels will have the most positive impact on reducing the current differential.
At a corporate level, AkzoNobel has launched a program to strengthen the senior female leadership pipeline with a target of reaching 30% of female leaders by 2025.
At a UK level, we have implemented a number of recruitment practices to support gender diversity including: Female positive wording in our job adverts with a focus on considering flexible working, investing in advertising vacancies on diversity positive job sites and introducing gender balanced interview panels. We continue to regularly review our recruitment and selection practices as a company to assess the impact that these practices are having, with a commitment to adjusting our approach where required.
We have implemented a number of important initiatives such as the ‘Women’s Inspired Network’ which aims to drive awareness, to educate, inspire and connect our colleagues, as well as our Mentorship Scheme for women taking maternity / adoptive leave which continues to have high visibility across the business, and we are hopeful that these types of initiatives have a longer-term impact on both attracting and retaining women as their careers develop.
Taking a holistic view of AkzoNobel across the UK, whilst we have business areas where the gender pay gap is not an issue, we fully acknowledge that this does not justify the differences which exist in other areas, and the local and global management teams will continue to take every opportunity to ensure that gender diversity and the associated pay gaps remains at the forefront of decisions taken within the business.
Reference
1 Taken from 2020 AkzoNobel Annual Report
I confirm that the gender pay gap calculations for Imperial Chemical Industries Limited are accurate and meet the requirements of the Regulations.
AkzoNobel 2020 Gender Pay Report
Foreword
AkzoNobel has a proud legacy of making the paints and coatings that colour and protect our homes, landmarks, vehicles, and more. We use our passion for paint to make a difference: our products touch almost every aspect of our daily lives. We fully recognise that maximising financial performance will only be possible by having a diverse workforce which fully reflects the markets in which we operate.
As with many large Manufacturing organisations, we have a historical gender imbalance which has built up over a number of years and will not be easily addressed – but we remain fully committed to building a culture in which everyone, irrespective of gender or race, has the same opportunities to build a long and mutually fulfilling career – whilst remaining flexible enough to enable as many possible lifestyle decisions to be incorporated into each employee’s career with AkzoNobel.
The historical gender imbalance which exists within some business areas continues to form an area of focus for all UK management teams. We have implemented a number of initiatives to seek to address these imbalances, where they exist. Equally, we acknowledge that real and long-term difference to the current gender pay gap will take time and as a company, we remain committed to continuing this journey.
Approach Taken
Under the requirements specified by UK legislation, we are required to report on the legal entities within our Group which have over 250 ‘UK employees’ (as defined in accordance with that legislation). The data provided in this report is based upon the snapshot date of 5 April 2019, and the 12-month reference period up to 5 April 2020 for the purpose of bonus analysis.
Statutory Disclosure
Imperial Chemical Industries Limited (trading as ICI Paints AkzoNobel) (ICI), and the figures for the statutory reporting requirements are as follows:
Mean Gender Pay Gap
ICI 3.38% (2018 : 9.3%)
Median Gender Bonus Pay Gap
ICI -4.8% (2018 : 0.5%)
Mean Gender Bonus Pay Gap
ICI 31.4% (2018 : 38.6%)
Median Gender Bonus Pay Gap
ICI 19.8% (2018 : 25.4%)
Proportion of employees receiving a bonus payment
Female Male Female Male
ICI 100% 99.0% 2018 97.5% 96.8%
2020 Gender Pay Report – FINAL
Proportion of employees within each pay quartile
Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4
F M F M F M F M
ICI 38% 62% 24% 76% 38% 62% 22% 67%
Gender Pay Gap – Hourly Rate and Bonus
There has been continued improvement in both the overall mean and median gender pay gap.
The primary driver of the reduction for ICI has been structural changes to the core business model impacting senior employees, leading to a higher proportion of male employees leaving.
Given the recruitment restrictions across AkzoNobel globally created by the global pandemic, there has been little opportunity to address the current imbalance at the more senior levels of the organisation. However, the issue has been highlighted at senior levels of the business, and there is a concerted effort to address the issue in the longer term through the promotion of more cross-functional moves and increased career development opportunities.
Taking a holistic view, the main structural issues identified previously remain a key driver of the gender imbalance under review. These remain:
- A much higher historical proportion of men across both executive and senior management positions
- The link between increased bonus opportunity and increased seniority
Building upon the initiatives outlined in previous years, the following activities are now fully consolidated into normal business operations. There is real desire to ensure that all employees across AkzoNobel, irrespective of gender, have an equal opportunity to both develop in role and have opportunities to move into more senior roles
Women’s Inspired Network
The ‘Women’s Inspired Network’ is a collaboration of employees globally across AkzoNobel that provides a platform for primarily women to celebrate their differences and increase their understanding of how personal & professional lives are made richer by embracing diversity. The Network is an enabler to empower, inspire and connect women in support of AkzoNobel’s diversity & inclusion ambitions and it widens access to networking for all employees irrespective of gender.
The feedback from participants has been excellent, and group speakers have included members of the global AkzoNobel Executive Committee and the Creative Director for Dulux. Mentorship scheme for women taking maternity and adoption leave The Mentorship Scheme, previously managed as a pilot scheme, has now been fully implemented at both the Decorative Paints Head Office (Slough). It aims to provide support prior to, during and on return from maternity/adoption leave, to ensure that we give women every reason to come back to us and maintain their confidence levels and personal development.
AkzoNobel have facilitated a number of workshops so far, and has a panel of mentors who have a wide range of skills and personal experiences, with the aim of matching each participant 2020 Gender Pay Report – FINAL with a mentor who has a similar background and has encountered similar challenges, both personally and professionally.
Structured / Unstructured flexible working
Allowing all employees the ability to work flexibly in a professional and respectful manner has been identified as one of the key drivers to addressing the current gender pay gap, as it allows both men and women to continue to develop their career whilst respecting the non-work priorities which they also need to balance.
Flexible working awareness is being rolled out across all UK locations, and feedback from the business is that, whether driven through a formal or informal approach, the new initiative is viewed positively and aims to allow all employees to achieve a more balanced work-life balance without impacting business operations.
Outside of the formal / informal Schemes, local initiatives such as senior management ‘leaving loudly’ and being open and transparent about working flexibly have also helped to drive a more open environment in which flexible working is viewed as driving benefits for both AkzoNobel and our employees.
Improvements to recruitment processes
As outlined in previous years, we have made changes to our recruitment processes to ensure we attract a diverse population of candidates for all advertised roles. The key achievements are as follows:
- Whenever feasible, all internal and external recruitment advertisements state that flexible working will be considered
- All Hiring Managers have an intake call with the Talent Acquisition team to ensure that they are approaching each vacancy in a consistent manner, and without any form of gender specific bias
- All adverts are ‘gender decoded’ to ensure that the terminology used to attract candidates is gender-neutral and not inadvertently driving gender bias
- An active log is maintained of all senior managers recruited to allow an on-going review of gender split to be reviewed and to assess the effectiveness of the recruitment policies.