Sustainable Development Solution: Using Gender Lens Investing In Climate Actions

The gender equality agenda and the battle against climate change are interlinked. This is demonstrated by how women and girls (i) are particularly affected by climate change, (i) can support and benefit from climate adaptation and resilience efforts, and (iii) can be instrumental in deploying climate strategies and promoting decarbonization. Moreover, the challenges climate change creates and the magnitude of the required transition are so enormous that they cannot simply be resolved by a public response. The private sector has a key role to build climate resilience and promote low-carbon development. One effective approach has been gender lens investing (GLI), a strategy to deploy capital to (1) boost women’s entrepreneurship, (ii) promote women in leadership positions, (ii1) support corporate actions promoting gender equality, (iv) encourage companies to develop gender-smart products and services, and (v) ensure women’s access to finance, jobs, markets, and trade. The increasing success of GLI demonstrates that investing in women-owned and -led companies and in diversity generates increased returns on investment, better business performance, and wider market outreach. GLI also has great potential to address the climate emergency through socially responsible corporate frameworks and investments. This policy brief focuses on how GLI, together with an active role of multilateral development banks, is critical to provide inclusive climate change solutions in G20 countries and worldwide.