Incorporating a gender lens to climate finance

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There are many studies that point to the fact that women are disproportionately affected by the effects of climate change. According to the Office of the High Commissioner for Human Rights, 80% of people displaced by climate change are women, they also hold solutions that are more effective to create a positive change.

At the same time, women are key contributors to the solution. A study by BCG suggests that closing the gender gap in the green economy could increase global annual GDP by $1.5 trillion, or about 1.7%.

A new guide to apply a gender lens to climate investing was published by the Women in Finance Climate Action Group (WIFCAG) in collaboration with 2X Global, Aviva, and the Oliver Wyman Forum.

The proposed oriented framework is comprised of three areas:

1. Define target outcomes to prioritize when integrating women in climate investments and activities. The four recommended outcomes for organisations to adopt are: ensure climate investments contribute to addressing gender-related issues or promoting gender equity; mitigate the disproportionate impact of climate change on women; mitigate the risks of not considering gender in climate investments; and value women as changemakers in climate investments.

2. Align organizations and investment processes with target outcomes to focus the governance, organization, and policies to promote gender equity; include gender-lens targets when setting portfolio climate targets and monitor progress against these; assess the impact of each climate investment on women when sourcing, analysing and deciding on investments; engage with each climate investment portfolio company on agreed gender stewardship priorities and monitor progress.

3. Integrate metrics into organization and investment processes to set targets (e.g. within an investment portfolio) or monitor progress (internally or with investee companies). Proposed metrics span a range of themes aligned to the target outcomes. Data collected for these metrics can be integrated into existing climate reporting and disclosure frameworks to articulate how investors have integrated a gender lens into their climate investing strategies. 

Check out the full report here.

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