The Dividends of Investing in the World's Women

With diversity, equity and inclusion under attack in the US and corporations reversing course on earlier commitments, it is worth reflecting on why International Women's Day, celebrated globally on March 8, continues to enjoy such strong support.

- Kimberly Tan

There is a simple explanation: Gender equality is not just a social cause. It is also an important driver of financial and environmental dividends.

While the economic benefits of employing women are well documented, the environmental angle is often overlooked, despite evidence of the value women bring to climate agendas and conservation projects. Climate change is rarely considered when we consider the need for greater gender equality.

We should draw a tighter connection between empowering women and addressing climate change.

CONSIDER THE EVIDENCE

Greater female representation correlates with superior environmental performance – at the country, corporate and household levels.

Scientists have documented a statistically significant association between female parliamentary representation and the stringency of a country's climate policies. Countries with a higher proportion of women in Parliament are more likely to ratify environmental treaties and implement policies aimed at addressing climate change, thereby reducing carbon dioxide emissions.

At a corporate level, companies whose boards included at least three women directors for at least three years achieved greater reductions in carbon-emissions intensity versus their peers in the same sector.

Such companies were also more likely (16 per cent versus 6.3 per cent) to have environmental targets linked to executive compensation, according to research by investment research firm Morgan Stanley Capital International.

A 2018 study by Yale University in the US also showed that women are more likely to be concerned about the climate crisis than men. In developed economies, women drive 70 per cent to 80 per cent of all consumer purchasing decisions, and are leading the transition to more sustainable lifestyles.

Women are more likely to recycle, minimise waste, and save water and energy in the household.

This care for our planet has deep roots.