In its newest abstract of findings report from their new Future Economy Lab in Asia, SecondMuse Capital revealed the hyperlink between gender equality and local weather change, highlighting the “undervalued relationship” between the 2 points.

“Gender inequality and climate change are interconnected in South and Southeast Asia. In the face of mounting climate challenges, women are uniquely positioned to serve as catalysts for climate mitigation and adaptation. Their roles in sectors such as agriculture, forestry, and ecotourism, which are all closely tied to climate resilience, provide women with valuable insights and hands-on experience in sustainable practices,” the report explains.

“Moreover, studies have consistently shown that when women have access to resources and decision-making power, they are more likely to prioritise environmental conservation and community well-being, particularly as men migrate more for work in the region.”

Understanding to potential of girls’s contribution in assuaging the influence of local weather change, the report stresses that whereas gender lens investing has taken off, it stays faraway from local weather finance.

“Investors are increasingly incorporating gender considerations into their strategies and directing capital toward businesses that prioritise gender diversity and women’s economic inclusion, in recognition of the superior financial and social returns that can be attained. A common standard for gender lens investment is the 2XC criteria, which requires that an investment meet certain targets in support of women in entrepreneurship, leadership, employment, and consumer roles,” the report says.

Also Read: The key to tackling climate change: Electrify shipping

“While there is a distinct relationship between gender inequality and climate change, investment mandates rarely combine a climate and gender lens, and there is a lack of communication and understanding between the two ʻworlds.ʼ Climate financiers are not always aware of the potential for gender equality to help catalyse positive climate action, and gender-lens investors may perceive climate science as being less relevant, difficult to understand, or difficult to integrate into their efforts.”

Supporting underfunded girls’s companies to sort out local weather change

SecondMuse Capital is the impact-focused capital arm of SecondMuse. Supported by Visa Foundation and AVPN, the organisation carried out Future Economy Lab specializing in “Financing Gender-Smart Climate Businesses in Asia.” The lab addresses financing boundaries confronted by gender-smart, climate-positive micro, small, and medium-sized enterprises (MSMEs) in South and Southeast Asia, particularly in India, Indonesia and Vietnam.

SecondMuse Capital reviewed greater than 40 current literature sources for this report, together with studies by main establishments, educational analysis, information articles, and webinars. It additionally performed greater than 25 key stakeholder interviews with people with related expertise and experience.

It highlights the challenges usually confronted by girls enterprise homeowners:
– Women are much less prone to maintain impartial entry to fundamental monetary companies and registrations
– Collateral necessities and gender biases exclude girls from finance
– Women enterprise homeowners have much less entry to sources, info, and networks than males
– Community is each a problem and an answer

But what are the options that stakeholders can look into within the effort to sort out local weather change and gender inequality? According to SecondMuse Capital, it has recognized a number of gaps and alternative areas that it may deal with by designing its monetary mechanism to get extra accessible capital into gender-smart local weather MSMEs in South and Southeast Asia.

Also Read: What is left behind in our conversation on climate change

“These opportunity areas are key levers of change, addressing some of the systemic challenges and specific contextual obstacles outlined in this report.”

One instance of such key alternatives is utilising blended (private and non-private) finance to decrease the true and perceived monetary threat of climate-related investments.

“Blending different funding sources can address both real and perceived credit risks, making investments more attractive to a broader investor base by adjusting the risk-return profiles. In turn, more funding will be directed toward proving the efficacy and scaling of gender-smart climate-focused projects.”

Image Credit: Nathan Cima on Unsplash

This article was first printed on February 22, 2024

The put up The climate change and gender equality connection: How to support underfunded women-owned business appeared first on e27.

Source link