Why (+ how) savvy companies are adding a gender lens to ESG investing

April 21, 2022

A 2021 study by BIS linked an increased share of female managers to lower CO2 emissions across 2,000 listed companies in 24 industrialized economies over a 10-year period.

The gist:

A number of private companies are already incorporating gender into their sustainability-linked bonds, as part of their broader ESG commitment.

What are green and sustainability bonds?

By definition, green bonds are created to finance projects that meet the issuer’s environmental objectives. But that doesn’t mean that issuers can’t also include gender considerations in the green bond framework — for example, by requiring that projects selected meet specific gender-related criteria around hiring, supply chains or customers. In our guide, we map out what adopting a gender lens could look like.

Here are two How To examples of incorporate climate and gender objectives as well:

• French energy company Schneider Electric, which includes the percentage of female employees, managers and women in leadership amongst its sustainability performance targets, alongside CO2 emissions reductions and other workplace diversity targets.

A number of private companies are already incorporating gender into their sustainability-linked bonds, as part of their broader ESG commitment.

• Swedish private-equity firm EQT’s sustainability-linked credit facility, meanwhile, requires that any company receiving EQT investment achieve at least 40 percent female board representation within 24 months of the time of acquisition, and that 85 percent of total electricity purchased must come from renewable sources within 30 months.

These examples show that “companies don’t have to choose between acting on climate and acting on gender. In fact, integrating gender into your climate commitments can strengthen both areas.”

Connect with the GreenBiz post here.