Racial equity is ‘going to be so important’: Siemens CEO on infrastructure decisions

Barbara Humpton, Siemens CEO, joins Yahoo Finance’s Alexis Christoforous and Akiko Fujita to discuss Biden’s infrastructure push.

Video Transcript

ALEXIS CHRISTOFOROUS: Well, now that President Biden's $1.9 trillion relief package is finally on the fast track to getting signed into law, many business leaders now hope that Congress will turn their attention to infrastructure. Among them is Barbara Humpton. She is president and CEO of Siemens Corporation. And, Barbara, thanks so much for being with us. Good to see you again.

I know that you wrote an open letter recently to the Biden administration and the new Congress outlining just how crucial infrastructure investment is. Look, infrastructure conversation is not a new one. So why is this the right moment to have that conversation?

BARBARA HUMPTON: Thanks, Alexis it's really great to be with you again, especially on this International Women's Day. What's special about this moment in history is the opportunity we have for what I'll call a triple play. Of course we need to make investments in infrastructure. The American Society of Civil Engineers has been giving us report cards for years. And we understand, we understand the potential positive return on investment, over 2 and 1/2 dollars every dollar invested in infrastructure. This is a good investment for America.

But think about it. Now is a time that we could also use that. Every dollar we spend will help to create jobs and help get the economy rolling again. And we have one more important lens to apply. And that's the lens of racial justice. What can we do to drive greater equity with each of the dollars we spend? So it's a moment where the money we will spend now will set the stage for a very healthy and prosperous future for all of us.

AKIKO FUJITA: Let me hone in on that last point that you made about trying to address racial equality or what exists as inequality through the infrastructure play. I mean, what are the specific investments you see as necessary when we talk about so many challenges in communities of color? Food deserts that exist, the roads that exist, transportation, there's certainly a long list there to address.

BARBARA HUMPTON: Well, we do know that in the past when there have been infrastructure projects put in place there could be the creation of the right side of the tracks and the wrong side of the tracks. Community leaders are all sensitive to that now and have all kinds of new techniques. In fact, you may be even seeing some infrastructure projects are literally taking down infrastructure that has divided communities.

So it's using that thought process of racial equity as we make our infrastructure decisions that's going to be so important. While Siemens is not necessarily involved in all aspects of rolling out communication infrastructure, we really believe that's going to be key. With every sector we deal with going digital, having access to high-speed communication is going to be critical for all of us. And so I'm encouraging, obviously, our decision makers to look there.

But we're also asking them to look at those things like connected e-mobility, electric vehicles. We're asking them to think boldly about rail projects to connect communities. Those are things that can help us make sure that people everywhere have access to growth and economic opportunity.

ALEXIS CHRISTOFOROUS: You know, Barbara, a lot of the industries that would be taking part in large infrastructure investments and projects are industries that are dominated by men. I mean, just take a look at the construction industry as just one. Just 9% of all jobs in the construction industry are held by women. Why do you think that is? And what can we do to start to change that narrative?

BARBARA HUMPTON: Yeah, I think there has-- there has long been a narrative that says certain roles are more suitable for men. And in fact, in the business I'm working in, the idea of mechanical engineering, electrical engineering, the common knowledge used to be, oh, you know, the guys like that. And we have seen in college programs over the years that concerns of the numbers of women enrolling.

Well, nowadays, so much of these areas for development for the future are taking advantage of skills that women are very strong in as well. There are more and more women entering these scientific fields. And what we're doing at Siemens is reaching out through new and different mechanisms to ensure that we're letting people know that these are very rewarding careers, that they can truly have an impact, and that they're welcome in these roles that we take.

AKIKO FUJITA: When you talk about more and more women entering some of these fields, including sciences, what do you think's contributed to that? Does it really start an early education? We've heard so much about encouraging young girls to really look into STEM education, trying to invest in that. Are we starting to finally see the results of those investments and those conversations we've had over the last several years?

BARBARA HUMPTON: Well, I think we are. And we at the Siemens foundation, our philanthropic arm, has really decided to devote all of our giving to this whole topic of igniting an interest in STEM and engineering in young people. The phrase I like to use is, you know, talent is equally divided across humanity. And we want access to as much talent as we can get. So just trying to get people everywhere interested in our field is, first, key to us, and then making sure that there's real equality in the young people that we're reaching. We're seeing the pipeline grow.

ALEXIS CHRISTOFOROUS: And, Barbara, we're asking all of our guests today the same question in their respective industries, of course. So in your field of expertise, what is the one thing you think can happen right now, the critical thing that needs to happen now, to get us to gender parity?

BARBARA HUMPTON: The number one thing we're focused on here is reaching out to different talent pools. So new partnerships like BossmakeHer. You may not have heard of it, but a way for us to be connected to women in senior levels who may be good candidates for the jobs that we have.

ALEXIS CHRISTOFOROUS: All right, we're going to leave it there. Barbara Humpton, president and CEO of Siemens Corporation. Thanks for being with us.

BARBARA HUMPTON: Great to be here. Thanks