Key Points:
- Climate change disproportionately affects women and girls, particularly in developing economies.
- Applying a gender lens to public funds focused on climate solutions is crucial.
- Higher levels of women in leadership benefit corporate performance, operations, and risk management.
- Gender lens equity funds have seen steady growth, with $4.1 billion in assets under management.
- Renewable energy funds have a low representation of women in portfolio management.
- Improving gender equality metrics in the renewable energy sector can lead to performance and operational benefits.
- Integration of equality criteria in climate-focused funds is necessary.
Climate crises disproportionately affect women and girls, especially in developing economies. According to UN statistics, 80% of those displaced by climate change are women. They are also more likely to be impacted by climate disasters due to persistently higher poverty rates compared to men.
As ongoing gender gaps persist worldwide, climate events further hinder women’s job security, education, and access to essential resources such as healthcare, clean water, and food. However, research shows that women can contribute significantly to climate change adaptation through their local knowledge, despite gender gaps in legal resources and economic participation.
In the rapidly growing field of environmental, social, and governance (ESG) investing, applying a gender lens to public funds focused on climate solutions becomes critical. Companies with higher levels of women in leadership positions have been found to perform better in terms of reducing carbon emissions and achieving financial success, according to reports by MSCI and other organizations.
Gender lens equity funds, which direct resources to women-focused initiatives and women-owned businesses, have experienced steady growth. As of March 2022, these funds held $4.1 billion in assets under management, with a 51% growth in 2021. However, renewable energy funds have a low representation of women in portfolio management. Only 13% of renewable energy fund managers are women, compared to over 50% in gender lens equity funds.
By improving gender equality metrics in the renewable energy sector, companies can harness the related performance and operational benefits. Currently, the top renewable energy holdings do not overlap significantly with the leading gender lens equity indexes and datasets. Incorporating equality criteria in climate-focused funds should involve investing in women-led clean energy innovators, seeking greater gender equality in leadership and workforce, and applying shareholder advocacy tools to advance corporate gender equality.
