How does climate change impact gender equality?

If you were to ask anyone who knows me the two things that I am most passionate about, I am certain that the answer you would get would be climate change, and gender equality, both of which are closely connected and represent a massive societal opportunities for all of us, regardless of your gender. That is why I am so excited to write today's issue of Money's Impact, which will be the first of two, focused on the intersection of these two opportunities, and how your investments can help to progress them both simultaneously.

Today, I will share why there is such a connection between climate change and gender equality, and in two weeks time, I'll be talking about what you can do to help through areas such as private investment.

What is the connection between climate change and gender equality?

"There's a solid base of evidence showing that women are disproportionately vulnerable to climate change, not because there is something inherently vulnerable about women, but because of socio-cultural structures that deprive women of access to resources, decision-making, information, agency, etc." - Marina Andrijevic, Researcher at Climate Analytics

Although climate change affects everyone, the impact that it has on different groups and communities differs widely. We saw a similar situation during the Covid-19 pandemic, where those who were able to rely on savings or passive income could stay safe in their homes, while millions of people were forced to continue working in often unsafe conditions, due to economic need.

The relationship between climate change and gender equality is very similar to this, because women tend to make up groups at higher risk of its consequences. Close to three quarters of those who live on less than $1 per day are women, and although women work two thirds of the world's working hours, they receive just 10% of the world's income.

A particularly striking fact for this subject is that 103 of 141 countries still have legal distinctions between men and women, which the UNDP say are 'likely to hinder women's economic opportunities'. These range from access to work, economic independence, and further education, which means that women are less likely to have access to the funds needed to escape the consequences of climate change, such as flooding or droughts.

"Climate change affects women and girls most acutely because it exacerbates the existing outcomes of entrenched gender inequality" - ActionAid

To look at this issue in more detail, I want to consider in particular the topic of water scarcity, and how this is connected to both climate change and gender equality as a case study.

Case study: Water Scarcity and Gender Equality

The link between water scarcity and climate change is easy to see - global warming has been shown to be 'one of the leading causes and greatest contributors to world hunger, malnutrition, exposure to disease, and declining access to water', due to the likes of more frequent and higher temperature heat waves, and the spread of uninhabitable landscapes which force many people to abandon their homes in search of a safer environment.

The UN Women Watch details one aspect of how water scarcity might disproportionately impact women: that women and girls are more likely to bear the burden of fetching water for their families, 'spending significant amounts of time daily hauling water from distant sources'. Due to climate change, they face consequences including:

• Contaminated water sources leading to health problems (in particular, known examples of arsenic contamination in groundwater presenting as skin lesions, which has led to women being 'shunned' from their communities)
• Forced migration from uninhabitable environments forcing women and girls into more vulnerable circumstances

The opportunity to accelerate change on multiple fronts

"Tackling climate change... will take diversity of thought and fresh, challenging perspectives" - Amanda Blanc, Group CEO of Aviva and HM Treasury Women in Finance Champion

It is true that the majority of sustainable goals and values overlap and incorporate aspects of one another into their mission - but what is especially interesting about climate change and gender equality is that, while both issues are closely tied to one another, so are the solutions.

In multiple studies, women have been shown to champion sustainable legislation when given greater opportunity in senior positions, and as we all reckon more and more with the impact that small, household decisions can have on the planet, it is clear that women play a large part in preventing climate change. On the other hand, sustainable practices have been proven to benefit the fight for gender equality.

Nature Communications have even found that 'if society can follow a pathway of sustainable development in the coming decades, progress towards achieving gender equality could see the number of girls experiencing high levels of inequality drop from 70% to below 25% by 2050'.

The UN Women Watch wrote about how women 'often have a strong body of knowledge and expertise that can be used in climate change mitigation, disaster reduction, and adaptation strategies', but there is also the power that we hold in our day-to-day lives. By 2025, women are estimated to control 60% of the world's wealth, and already, we control approximately $20 trillion in consumer spending, which means that where we put our money really matters. If a company does not uphold values of sustainability and equality, both men and women can come together to form an extremely strong customer group who makes it known that they have lost our business. Instead, we can align our cash with a company or organisation that we know has a positive impact on our world.

A new emerging movement?

We will be discussing how you and I can contribute to these goals in the next issue of Money's Impact, but there are a couple of exciting recent developments that I want to share. One of these is the discussions surrounding climate change and gender equality at the UN's Climate Change Conference, which ended only a few weeks ago.

At COP26, two new programmes were announced to 'boost women's climate leadership and support those most vulnerable to climate change'. During the 'Gender Day' of the conference, the UK announced that it would be contributing ￡165 million to focus on the following aims:

• Up to ￡45 million will help to empower local communities and grassroot women's groups in Asia and the Pacific to challenge gender inequalities an adapt to the impacts of climate change
• ￡120 million will help to build resilience, prevent pollution, protect biodiversity strengthen renewable energy, and better manage waste, while also supporting women's leadership, access to finance, education, and skills in Bangladesh

More research and evidence is being developed every day, and I would like to mention a report I read recently, which I found super inspiring. Oliver Wyman and The 30% Group have collaborated on The Climate Action Gender Gap: By recognising the role of women as change-makers, companies can speed up the race to net zero . Here are a couple aspects of the report that I found especially interesting:

1. Female investors are more than twice as likely as their male counterparts to say that it is important for the companies they invest in to integrate ESG factors into their policies and decisions
2. Women are more likely to invest when there is a gender lens - one study found that 32% of investments by female venture-capital partners are in companies founded by women, compared with 16% of investments by their male counterparts
3. The report outlines three roles that need greater active consideration of women as Climate Action Leaders, Climate-lens Investors, and Low-Carbon Product Influencers

Most of all though, this report reiterates something we all already know - that climate change needs to be a group effort, women and men included. As we can see from the recent data (including the research in this issue), it is clear that improving gender equality will help us to find solutions for climate change, as well as many other global challenges. These solutions will lead to greater societal opportunities, but also improved economic opportunity, as sustainable investing continues to thrive.

"Better decisions are made when women and men come together at the table to create a 'larger horizon'" - Christine Lagarde, European Central Bank President

I'm super excited to continue this discussion on what we all can do to build on this opportunity in the next issue of Money's Impact. In the meantime, I'd love to keep the conversation going in the comments. How often do you apply a gender-lens to your investments. After reading today's issue, do you think you will start doing so in the future?

• Article: Ayesha Tandon, Tackling gender inequality is crucial for climate adaptation
• Report: Oliver Wyman & The 30% Group, The Climate Action Gender Gap: By recognising the role of women as change-makers, companies can speed up the race to net zero