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Chris Weston, Chief Executive Officer

A G G R E K O P L C

Gender Pay Gap Report 2019

Building an inclusive organisation is the most effective approach to ensuring that we can support everyone in fulfilling their potential. This has been our core belief ever since we started on the journey of creating a work environment that truly values difference.

We’ve made progress on many fronts this year. It’s become more evident that inclusion must truly be in the fabric of how we work in order for Aggreko to continue to be successful in the future. Our business and solutions now require more collaboration – and an inclusive culture is key to maximising the power and quality of that collaboration across regions, sectors and product groups.

In line with this, our focus this year has been on building awareness and capability amongst our most senior leaders so that they can take the necessary action to build that inclusive culture in their teams. I am pleased that the feedback and commitment of those senior leaders has been positive.

Our gender pay numbers this year show some improvement over previous years which is encouraging. As these numbers can be sensitive to quite small changes in our workforce profile, we are not complacent in any way and have clear plans and priorities to take us forward.

I remain convinced that valuing difference and working collaboratively strengthens our ability to deliver the best service and solutions to our customers.

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F O R E W O R D

Reporting our gender pay gap helps us to track the impact of our efforts in valuing difference. Our investment in HR technology this year adds to our ability to understand all sections of our workforce better and direct our investment and focus where it can have the most impact.

I confirm that the gender pay gap data contained in this report is accurate.

Anna Filipopoulos, Group Human Resources Director

This year, we have continued to work with our Value Difference team - a group of leaders from across our organisation sponsored by our CEO. Critically, we have invested in building their awareness and understanding of valuing difference, drawing on the latest thinking on how to make inclusion a reality in organisations. We have shared this experience with our global senior leadership team, and have plans to continue this engagement throughout the business.

We want to embed collaboration for the benefit of our customers into our way of working and we know that creating an inclusive culture that enables everyone to participate fully is crucial to achieving this goal.

Our gender pay gap is one indicator to help us understand our progress on this journey. Our reported numbers show some improvement from last year, and globally we have seen a small increase in the proportion of senior women in the workforce.

Whilst it is good to see improvement, we know that relatively small changes in our workforce profile can have an impact on these numbers, so we continue to focus on understanding and addressing those factors which will make lasting change. We’re pleased to have this opportunity to share more about the progress and investments since our last update, as well as information on our future plans.

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Legal requirements

The data which must be reported is:

1. The difference in mean and median hourly pay between men and women

2. The difference in mean and median bonus pay between men and women

3. The proportion of men and women receiving a bonus

4. The distribution of men and women’s pay across four pay quartiles (lower, lower middle, upper middle, upper)

The government has issued instructions on which elements of pay are to be included in the calculation of hourly rate. This includes basic pay, bonuses and allowances but excludes overtime, redundancy payments, termination payments, benefits in kind and any salary sacrifice schemes.

I N T R O D U C T I O N

In line with government requirements, we have published our gender pay gap statistics as at 5 April 2019. As last year, we only have one employing entity in the UK required to publish data. However, we are again voluntarily publishing the consolidated data for all Aggreko staff based in the UK, which includes our plc entity with fewer than 250 employees.

People globally

People in the UK, employed across all business areas

O U R W O R K F O R C E

Men

83%globally

Men

72%in the UK

Women

17%globally

Women

28%in the UK

Overall the profile is similar to last year although in the UK there has been an increase of 3 percentage points (from 25% to 28%) of women in our workforce numbers. Globally, the proportion of women at senior levels has increased slightly by 1 percentage point.

Non-Managerial

Senior Management

Professional & Managerial

Men

79%

Men

82%

Men

81%

Women

21%

Women

18%

Women

19%

Data as at April 2019

Globally, our people sit in these types of roles

877

6236

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T H E G E N D E R P A Y G A P

Who received a bonus

Men

Women

94%88%

18.5% 15.8%Women’s bonus is

LOWER (Median)LOWER (Mean)

21.0%15.7%Women’s hourly rate is

LOWER (Median)LOWER (Mean)

G A P D A T A – U K E X C L U D I N G P L C

Proportion of men and women by pay quartile - UK excluding plc

Men

Women

80.8%

19.2%

Men

Women

78.8%

21.2%

Men

Women

77.7%

22.3%

Men

Women

60.0%

40.0%

UPPERMIDDLE

QUARTILE

LOWER MIDDLE

QUARTILE

LOWER QUARTILE

TOP QUARTILE

Top quartile

UPPERMIDDLE

QUARTILE

LOWER MIDDLE

QUARTILE

LOWER QUARTILE

TOP QUARTILE

Upper middle quartile

UPPERMIDDLE

QUARTILE

LOWER MIDDLE

QUARTILE

LOWER QUARTILE

TOP QUARTILE

Lower middle quartile

UPPERMIDDLE

QUARTILE

LOWER MIDDLE

QUARTILE

LOWER QUARTILE

TOP QUARTILE

Lower quartile

What is the Gender Pay Gap?

The gender pay gap is the difference between the average pay and bonuses of all men and women across an organisation. It is likely to arise from having a greater proportion of men or women at different levels of seniority in the workforce. It is not the same as equal pay. Equal pay legislation requires companies to pay men and women the same for doing the same work, similar work or work of equal value. In the UK and around the world we are committed to providing equal pay for equal work and have processes in place to ensure this.

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T H E G E N D E R P A Y G A P

34.9% 12.1%Women’s bonus is

LOWER (Median)LOWER (Mean)

20.8% 12.0%Women’s hourly rate is

LOWER (Median)LOWER (Mean)

Proportion of men and women by pay quartile - UK & plc

UPPERMIDDLE

QUARTILE

LOWER MIDDLE

QUARTILE

LOWER QUARTILE

TOP QUARTILEUpper

quartile

Men

Women

74.8%

25.2%

UPPERMIDDLE

QUARTILE

LOWER MIDDLE

QUARTILE

LOWER QUARTILE

TOP QUARTILE

Upper middle quartile

Men

Women

78.0%

22.0%

UPPERMIDDLE

QUARTILE

LOWER MIDDLE

QUARTILE

LOWER QUARTILE

TOP QUARTILE

Lower middle quartile

Men

Women

76.6%

23.4%

UPPERMIDDLE

QUARTILE

LOWER MIDDLE

QUARTILE

LOWER QUARTILE

TOP QUARTILE

Lower quartile

Men

Women

61.0%

39.0%G A P D A T A – U K & P L C

Who received a bonus

Men

Women

94%88%

There are some changes from last year:

n Our mean hourly pay gap for UK excluding plc (shown on previous page) has improved from 17.9% to 15.7%. This has been helped by a change in our bonus plan design and a slight shift in our female workforce profile

n Our median hourly pay gap for UK excluding plc has also improved from 22.4% to 21.0%

n Our new bonus design, which follows a common framework across the organisation, has been a contributing factor in closing the mean bonus gap for UK excluding plc from 29.1% to 18.5%, as well as the performance of parts of our business that employ high numbers of women

n The patterns for the UK including plc are similar for the same reasons

n We have increased the percentage of women in each pay quartile. The smallest increase is in the lowest quartile, reflecting an increased proportion of more highly paid women in our workforce

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O U R A C T I O N S

What are we doing?As shown below in our roadmap, the focus for this year was on building awareness. Consequently, we have invested significantly in ensuring that our most senior leaders really understand what valuing difference means at Aggreko and how creating a more inclusive culture for our employees enhances our ability to deliver service and solutions to our clients.

We have:n Delivered an inclusion workshop to our Value Difference team

n Engaged our global senior leadership team in an inclusion awareness session at our leadership conference

n Carried out further research amongst our senior leadership group to get more input, ideas and commitment for improving the inclusive nature of our work environment

n Implemented “mini missions” for our senior leadership. These are challenges to leaders to make changes and take action in their day to day activities

We have also undertaken a number of activities relating to the specific commitments we made in last year’s Gender Pay Gap Report. These are shown on the next page, using the same framework as last year.

2018InitiateSet up infrastructure and governance

2019 AwarenessBuild awareness from top down. Pilot ideas locally

2020 Understanding& ApplicationExtend action and awareness

2021 IntegratedInclusion embedded into everyday activities

2022 and beyond SustainableInclusion is how we do business.

Our Roadmap

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O U R A C T I O N S

JOININGRecruitment: We have implemented a global standard recruitment process, supported by technology, which ensures best practice and fair and consistent recruitment across Aggreko.

We have conducted pilot exercises on the use of gender neutral job postings and blind applications, and will test these approaches further.

We have instigated a global recruiting working group to further improve recruitment practices and use of digital tools.

Induction: We have refreshed our “Be Welcome” induction programme and implemented this as a global standard which emphasises our Always Orange values and expectations. It also allows us to establish the importance of inclusion from the start of a person’s career with us.

PERFORMINGReward: We continue to operate checks and balances into our pay review processes to ensure bias free decision making.

Bonus Plan: We have supported our managers through the first year of our new bonus plan to ensure it has been implemented fairly and without bias.

STAYINGFamily Friendly Policies: Building on the results of the benchmarking review across our major markets, we have developed recommendations for change in the UK which will be rolled out and communicated in early 2020.

Engagement Surveys: We have introduced a local language facility in our “Be Heard” engagement survey tool, thus improving the ease with which colleagues whose first language is not English can express their views.

Flexible Working: We continue to identify ways to remove barriers to allow flexible working in ways that support both our people and our customers.

PROGRESSINGWe are building an inclusive mindset in the organisation through our core leadership programmes. Additionally, our talent management approach has a stronger focus on the Aggreko leadership model which establishes behavioural expectations around diversity and inclusion.

Career Development and Talent: We have refreshed our processes for talent review and succession to improve objectivity and fairness.

We have enhanced our succession process to purposefully include a discussion of candidate diversity. This is also included in the succession reporting to the Board.

Learning and Development: We have developed consistent core programmes for each level of leadership (first-time, mid-level and senior level) with inclusion as a core thread.

We have developed standard leadership assessment processes to drive consistent expectations and remove unwanted bias.

Underpinning much of the activity described, we successfully launched our new HR technology platform in September 2019. This investment will enable us to track and measure the impact of our Value Difference work much more easily:

n It will provide the facility for local managers to access better information about their workforce profile

n We will be able to access useful segmented reporting and generate insights to inform our decision making around where to place our efforts and future investments

n We will be able to segment talent pools for greater action planning and monitoring of diversity in key populations

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W H A T ’ S N E X T

For 2020, we plan to:n Continue to share our commitment to inclusion and collaboration. This will

be highlighted in several key leadership events taking place in 2020 across the business

n Roll-out a leadership framework that incorporates inclusion as a key component of leadership capability and effectiveness

n Build on the commitment shown by volunteers from our senior leadership team to champion inclusion. We want to support active collaboration and create a platform for the sharing of ideas and initiatives

n Develop a set of actions and an integrated roadmap to promote a culture of inclusion and collaboration

n Continue to develop our people practices and processes, leveraging the power of the new HR technology system, to implement best practice approaches that support inclusion and help us to track the impact of our work on people’s experience of working with Aggreko

We are pleased with the progress we have achieved – particularly with the level of enthusiasm and support we have seen amongst our senior leadership who have embraced the idea that an inclusive organisation will be more powerful. We are ready to take the action needed to bring this to life.

With such collective energy, we are confident that we will succeed in our ambition to embed inclusion into everything we do, and to achieve long-lasting, sustainable change.