ACTION TOOLKIT WOMEN AND THE NET ZERO ECONOMY - A TRANSITION TOOLKIT FOR BUSINESSES WITH GLOBAL SUPPLY CHAINS - GOV.UK
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ACTION TOOLKIT WOMEN AND THE NET ZERO ECONOMY A TRANSITION TOOLKIT FOR BUSINESSES WITH GLOBAL SUPPLY CHAINS
2 ACTION TOOLKIT | WOMEN AND THE NET ZERO ECONOMY 3 FOREWORD The toolkit builds on the WOW programme’s recent work which investigated how women are affected WHO IS THIS TOOLKIT FOR? WOMEN AND disproportionately by climate change across various supply chains and This toolkit is primarily for THE NET ZERO worked with companies who are Sustainability, Climate, and identifying opportunities for achieving Procurement professionals working a gender-just transition to net zero. ECONOMY It also draws on the Business in multinational companies. Its purpose is to stimulate action Fights Poverty Climate Justice on a gender-just transition to a Programme, that explores how net zero economy by sparking C business can put people at the heart limate change and of climate action. The Climate Justice collaboration across functions inequality are the twin Framework, developed jointly with and addressing environmental and social impacts together. challenges of our time. Harvard Kennedy School Corporate Responsibility Initiative, demonstrates It focuses on action to reduce scope The climate crisis is accelerating faster On current estimates, how businesses can take action 3 emissions (known as all indirect and is more severe than previously reaching economic gender through their core operations, emissions across the upstream anticipated. To avoid the destructive philanthropic and social investments, and downstream ends of the value consequences of a world warmed by parity will take 135 years; and policy advocacy. It focuses on chain). The tool looks particularly more than 1.5°C, we must reduce net yet another generation of three areas of social impact: lives, at the upstream end, in emerging carbon emissions by 45% from 2010 levels women will not experience livelihoods and access to learning. and less developed economies. by 2030, and decarbonise the global economy to reach net zero by 2050.1 equality in their lifetime. We hope that this toolkit will help It is particularly relevant to sectors spark new conversations to identify that rely on significant numbers With just nine years left to avoid and address the impacts of net of women in their supply chains catastrophic and irreversible impacts zero commitments on women (including agriculture and apparel) of climate change, many companies So, how can we transition to across the value chain, as well as and those sectors where women are making climate action pledges a net zero economy at the on how business can deliver on are being disproportionately ‘left to reach net zero emissions in their same time as economically both social and environmental behind’ (e.g. energy, extractives, value chains by 2050 and earlier. empowering more women? commitments in a more integrated technology and tech). These net zero commitments are very way that creates value. To answer this crucial question, welcome, but come with significant Business Fights Poverty and And, perhaps most importantly, challenges. In particular, the need the PwC team implementing it serves as a reminder to include to reduce Scope 3 emissions raises the WOW programme for the women in decision-making, to tough questions for business, and the Cristina Bortes, Director PwC UK Foreign, Commonwealth value their unique knowledge resulting transition will impact many Sustainability & Climate Change and Development Office have and solutions, and to partner with of the most vulnerable women who Team | WOW Programme Director collaborated to create this toolkit. them as agents of change. work upstream in global supply chains. Jane Nelson, Director, Corporate There is an increasing consumer Through gender-just net zero This will compound the significant Responsibility Initiative, expectation and rising investor strategies, we can achieve essential set-back for women’s economic Harvard Kennedy School interest in both gender and climate environmental outcomes, protect empowerment that resulted from - such as the Gender and Climate the lives, livelihoods and learning of Zahid Torres-Rahman, CEO, the COVID-19 pandemic. On current Taskforce. The connection between women, and enable them to access Busines Fights Poverty estimates, reaching economic gender and climate is still relatively their fair share of opportunities gender parity will take 135 years; yet unexplored, but this nexus holds in the zero-carbon economy. another generation of women will not huge potential for positive social experience equality in their lifetime.2 and environmental impact.
4 ACTION TOOLKIT | WOMEN AND THE NET ZERO ECONOMY 5 EXECUTIVE SUMMARY WHY DO GENDER AND CLIMATE MATTER? TAKING ACTION BUSINESS Business should address WOMEN... IN THE SUPPLY CAN TAKE gender and climate to: CHAIN ACTION BY... 14 X ...more Communicating likely to die Increase impact Women suffer Empowering women can 65 - 95% across internal siloes disproportionate impacts of lead to improved results from Committing to holistic climate change e.g. 14 times supply chain to boardroom. strategies that protect more likely to die during For many companies 65-95% of emissions come from scope people and planet environmental disasters 3 emissions, which are outside their direct control and sit largely Collaborating inside and Spur innovation in raw materials production and outside of their company consumer use of products. ...of the agricultural 43 % in new technologies, labour force products, services, processes Action on scope 3 emissions offers and business models. opportunities for action at the upstream For example, companies can: Women play a central end of the supply chain where women (but often invisible) role Create decent green jobs for women face the most vulnerabilities. in global supply chains Enhance the education and as producers, distributors skills of women workers and entrepreneurs e.g. 43% of the world’s agricultural Meet investor interest Source from women innovators and labour force are women Raw Manufacturing entrepreneurs in the green economy e.g. new gender and climate materials / Processing funds from major public and Ensure women can overcome the private organisations. digital divide and access digital technology, products and services 70 % ...brand purchasing Promote leadership opportunities decisions for women (from supply Women play a key role chain to boardroom) as consumers in the shift Advocate to address social norms to a net zero economy e.g. that create barriers, e.g. land tenure More than 70% of brand purchasing decisions are End of life Distribution made by women globally.
6 ACTION TOOLKIT | WOMEN AND THE NET ZERO ECONOMY 7 SECTION 1 THE BUSINESS CASE FOR A GENDER-JUST NET ZERO STRATEGY C limate change poses serious material risk to existing business models The hardest challenge in the transition to a net zero and value chains. It has economy will be meeting been estimated that, commitments on indirect or The good news is that on current trajectory, scope 3 emissions, which often considering the twin climate change could make up between 65 - 95% of challenges of net zero and result in the loss of 11- a company’s total emissions. gender equality in tandem can 14% of global GDP by help to increase companies’ 2050. It will be emerging As WOW have previously noted, impact; spur innovation; economies - which Acknowledging these risks, there ‘the transition to net zero will have and meet investor interest. differentiated impacts on an already provide much of the raw is a global push to reach net zero unequal workforce, and change will emissions by 2050. Companies are materials needed in global not be gender neutral’.6 The cost joining countries, investors, cities of gender inequality has already supply chains - which and regions in making pledges to The good news is that considering been estimated at $28 trillion to the the twin challenges of net zero and will be hit the hardest. 3 proactively reduce their emissions global economy,7 and businesses gender equality in tandem can help - the Race to Zero Campaign are losing out on women’s talent, to increase companies’ impact, spur now covers 25% of global CO2 leadership, and the potential increase innovation and meet investor interest. emissions and over 50% of GDP.4 11-14% LOSS in consumer spending power that Bringing together environmental and For many companies, the hardest equality would bring (see Risks and social impact initiatives (rather than challenge in the transition to a Opportunities, below). A transition having two separate ones) can create net zero economy will be meeting to net zero that does not take into value whilst helping companies to climate change could commitments on indirect or scope account half the world’s population, manage material risks to business and result in the loss of 11-14% 3 emissions, which often make up would be a tragic lost opportunity. seize new opportunities. Companies of global GDP by 2050 between 65 - 95% of a company’s can also leverage various drivers of total emissions.5 Proactively reducing change that are coinciding with the emissions from products, services transition to net zero, including for and investments will change how example, circular economic models companies run their supply chains and digital transformation, to create a and interact with their suppliers gender-just transition that works for as well as their workforce. companies, women and the planet.
8 ACTION TOOLKIT | WOMEN AND THE NET ZERO ECONOMY 9 HOW ADDRESSING THE TWIN THREE REASONS CHALLENGES OF GENDER AND “We have a long term WHY BUSINESS NET ZERO CAN CREATE VALUE vested interest in a resilient SHOULD ADDRESS GENDER AND cocoa supply chain, and CLIMATE TOGETHER Whilst efforts are now underway by and these two considerations 1 the World Economic Forum and 50 may be managed by separate understand the potential of Increase impact and leading companies to use an agreed teams within organisations.8 This joining climate and gender. commercial return: set of integrated ESG metrics, at inhibits the ability of companies Women are key players in Empowering women present many companies use very to recognise risks and to identify the cocoa communities, increases business impact from different indicators to assess their opportunities for creating value the boardroom to supply chain. Environmental and Social impacts, during the transition to net zero.9 and by including them in e.g. women’s involvement in both our climate interventions, adaptation and mitigation strategies we know we can accelerate is a proven success factor in numerous impacts. For example, settings from Colombia to Mali11 and businesses that perform well in our agro afforestation on gender diversity return greater work we have ensured that profit.12 Bringing together gender and women are leading and climate can also avoid unintended owning the tree seedling consequences of climate action, such as litigation and reputational nurseries for replanting.” damage from extensive job losses. 2 Cathy Pieters, Senior Director, Sustainable Ingredients and Cocoa Spur innovation: Investing in PLANET PROSPERITY PEOPLE Life, Mondelez International new technologies, products, typical E measures Employment and wealth typical S measures services, processes and generation e.g. decent business models can deliver solutions Reduce GHG green jobs for women - Human Rights that build resilience in communities as emissions such as climate-smart well as in the business. e.g. Between Labour farming or upskilling in 2017 - 2023 Decentralised Renewable Nature loss standards male-dominated sectors Energy (DRE) jobs in India, Kenya Land use like mining, tech, energy. Diversity and and Nigeria are set to grow 100%, inclusion 80% and 10% respectively. Women Waste Innovation of better play a significant role in sales and products and services e.g. Health and Recycling distribution of renewable energy.13 Safety 3 women entrepreneurs Water design and distribute green Meet Investor interest: There Skills and products and services like is a rise in gender-lens, ESG training renewable energy and and green investing, e.g. recycling networks. Community the 2X Gender and Climate Finance Programmes Taskforce was launched by the 2X Community and Social Challenge and Gender Finance vitality e.g. women are Collaborative to ‘leverage the power of responsible for 70% gender-smart investments for climate of brand purchasing action.’ It is led by CDC, EBRD and EIB. decisions and may be more sustainable consumers.10
10 ACTION TOOLKIT | WOMEN AND THE NET ZERO ECONOMY 11 RISKS VALUE PROTECTION 14 OPPORTUNITIES VALUE CREATION The potential value of sustainable business opportunities $1 7X 215 biggest global companies report almost is almost 7x the cost of realising them (US$311bn in costs, TN MORE COST US$1 trillion at risk from climate impacts, US$2.1 trillion in opportunities).21 Development Finance AT RISK EFFECTIVE with many expected to hit before 2025.15 Institutions have recognised the gender and climate risks and opportunities including CDC, EIB, EBRD and the 2XChallenge. $20 BN LOSSES The severe flooding in Thailand in 2011 affected the supply chains of more than 14,500 companies, with total insured losses estimated between US$15 billion and US$20 billion.16 $18 BN IN GENDER AWARE INVESTMENTS By the end of 2020 there were over $18 billion in assets managed by gender lens investment (GLI) vehicles across public and private markets.22 54% According to the 2020 BNP Paribas Global Entrepreneur Report, FEMALE $28 INEQUALITY COST TN The cost of gender inequality has been estimated at $28 trillion to the global economy.17 BUSINESS REDUCING CARBON 54% of women entrepreneurs view a reduction in their carbon footprint as their top measure of success in investment, beyond financial returns. This is compared with 41% of men. 23 43% OF AGRICULTURE Women represent 43% of the global agricultural workforce and suffer disproportionate agricultural impacts of climate change including lower yields and incomes, less $15 TN OF CONSUMER The female economy represents a market more than twice the size of India and China combined. By 2028, female consumers SPENDING BY WORKFORCE time (e.g. it takes longer to collect scarcer wood for fuel) will control around $15 trillion of global consumer spending.24 WOMEN ARE WOMEN and worsening health outcomes (due to heat and pests).18 21% Some 80% of people displaced by climate change Companies in the top-quartile for gender diversity on executive ARE 80% OF THOSE are estimated to be women, and women are 14 teams are 21% more likely to outperform on profitability MORE DISPLACED times more likely to die during environmental and 27% more likely to have superior value creation25 PROFITABLE disasters due to their lack of access to warning ARE WOMEN BUSINESSES systems, mobility, and caring roles.19 The current global labour force participation rate for 49% WOMEN VS. 75% MEN IN GLOBAL women is close to 49%. For men, it’s 75%. Women tend to be over-represented in jobs that are perceived as unskilled and ‘low value’, are more likely to be involved 6X LOWER EMISSION GROWTH RATE According to Bloomberg research, firms with women making up at least a third of directors have lower emissions growth rates (0.6% compared with 3.5% for firms with no women on WORKFORCE in the informal economy, and are less likely than men the board) and score better on environmental disclosures.26 to access skills and training for a green transition.20
12 ACTION TOOLKIT | WOMEN AND THE NET ZERO ECONOMY 13 DRIVERS OF CHANGE The shift towards Automation and were able to undertake training. Further skills training is planned to A longside the risks and opportunities already mentioned, various drivers of change are creating scenarios that could have both positive and negative outcomes for Technological Innovation Increased automation and amplify their gender impact.37 The energy sector faces perhaps the greatest labour force upgrades to less energy women’s economic empowerment and climate change. intensive machinery can help disruption, with widespread to significantly reduce energy job elimination in extractive consumption. E.g. third party energy industries which must be addressed, audits of suppliers carried out by alongside the impact on local and The shift to more circular The shift away f rom New Balance, through IFC’s Vietnam national economies in countries economic models ‘eff iciency’ models of food Programme, uncovered potential dependent on income from the and raw material production Recycling, resale, rental and annual energy savings of 14-31%.34 sector. Although most at-risk workers to ‘resilient’ models repair services could reduce in these sectors are male, women emissions in the ‘fast fashion’ Automation may lead to job will also be impacted, e.g. through There is now increasing sector by 347 million metric tons losses, particularly for women reduced household incomes and the adoption of nature-based by 2030,27 and have the potential who are concentrated in labour- rise in gender-based violence that solutions and regenerative agriculture, to grow decent, skilled jobs. intensive work, and will require workers accompanies economic shocks.38 e.g. the ‘Primark Sustainable Cotton to reskill. Due to the disproportionate Programme’.29 In traditional and New jobs may be concentrated domestic and care burden, women indigenous societies, women in consumer markets, and have less time for training. They are often responsible for food favour traditionally ‘male’ roles such as production and are often keepers of are also underrepresented in STEM Social safety nets logistics, IT and distribution. Closure education: globally women make valuable traditional knowledge.30 COVID -19 has seen the biggest of garment factories in predominantly up just 3% of ICT students. 5% for low- and middle-income countries growth in provision of social Women may face increased mathematics and statistics, and could significantly impact women, protection globally and will be unpaid labour (e.g. increased 8% for engineering, manufacturing who make up 59% of workers in essential for cushioning the impacts weeding if pesticides are not and construction courses.35 Bangladesh’s garment sector.28 of climate change. Given that 80% of used), and have lower access to people displaced by climate change capital and technical knowledge are women, social protection plays that may be required.31 Shift to renewable energy a huge role in improving women’s resilience to climate-related shocks, The decentralised renewable addresses barriers to economic energy (DRE) sector is already The shift towards participation and has positive a significant employer in emerging effects on household productivity digital solutions economies,36 and offers potential and labour market participation.39 Digital advisory services to create new jobs for women in bundled together with financial a sector that is traditionally male- An analysis of the Kenya Hunger and other services have the potential dominated. CDC invested in a large Safety Net Programme40 to increase smallholders’ incomes upskilling project with their equity showed that, whilst unconditional cash by 57% and productivity by 168%.32 investee, Ayana Renewable Power, payments enabled some households a green energy infrastructure to invest in new business ventures, Farmers in low- and middle- the poorest households spent the company in India. CDC co-developed income countries have unequal cash on immediate needs. Social a programme to upskill local workers access to digital technologies and protection must be complemented using a gender lens, to ensure knowledge, with women 8% less likely with other forms of support that help the participation of women, for than men to own a mobile phone and those in extreme poverty exit the example by the provision of gender- 20% less likely to use mobile internet.33 cycle and build long-term prosperity. sensitive facilities (e.g. transport, toilets), which meant women
14 ACTION TOOLKIT | WOMEN AND THE NET ZERO ECONOMY 15 SECTION 2 INTEGRATING GENDER EQUALITY INTO THE UPSTREAM SUPPLY CHAIN IDENTIFYING As companies consider how to reduce their scope 3 emissions at each stage of the product life cycle, there are opportunities to integrate action on gender equality alongside their net zero transition: OPPORTUNITIES FOR ACTION IN Raw materials Manufacturing / Processing THE SUPPLY CHAIN Primark Cotton Connect, Gujarat India: Through training women farmers at organic Miro Forestry is a sustainable forestry and timber business with plantations in Ghana farmer schools, the programme has seen a 44% and Sierra Leone. While the majority of reduction in pesticides used, 10% drop in water jobs are currently on plantations, as the T he level of influence palm oil, cocoa, and beef. Tesco 42 used and 200% increase in women’s incomes. business expands, most new jobs will be in calculates that 90% of their emissions Primark is now expanding the programme to harvesting and processing. CDC supported and control each 2 more countries and aims to reach 160,000 Miro Forestry to perform a gender workforce fall within scope 3, with 47% of these company has over its originating in raw materials and farmers by 2022 – thereby helping to meet their diagnostic and adopt a gender action plan. global carbon and gender commitments.46 The diagnostic revealed key opportunities carbon emissions is manufacture of products, and 42% for Miro, which led the company to set a classif ied by scopes: from consumer use.43 Both companies target to increase the number of women in have committed to achieve net zero the workforce from 26 per cent to 40% over across their value chains by 2050. the next two years. Miro has also introduced Both companies also have gender a series of specific initiatives to advance equality strategies as part of their women’s employment and leadership, SCOPE 1: direct emissions from commitment to human rights including mentorship and upskilling.47 owned or controlled sources; and sustainable development.44 SCOPE 2: indirect emissions from According to the Science Based the generation of purchased energy Targets initiative, ‘The opportunity electricity, heat and steam; for companies to use their influence SCOPE 3: all indirect emissions (not within value chains to act as catalysts included in scope 2) that occur in for the deep decarbonization of the the value chain of the reporting global economy is immense.’45 company, including both upstream End of life Distribution There are some high emitting industries, and downstream emissions. for example cement, and steel, in In 2019 The Body Shop launched a Community Since 2011, Frontier Markets has saved which Scope 3 emissions represent a Fair Trade recycled plastic programme. It sources 1.5 million tons of carbon through the relatively small proportion of emissions. plastic from marginalised, waste pickers in India, distribution of 815,000 clean energy This report focuses on the offering a fair price, steady income and better products in 2,000 communities. Its Women Nevertheless, there will still be upstream end of the value chain. working conditions in an informal sector that’s often Leadership Council ensures a strong opportunities to create value by joining volatile and discriminatory. With support from local gender-lens is applied. Its products are Scope 3 emissions are the largest net zero strategies with company partners, the Body Shop are also ensuring that estimated to have saved 406,000 hours from source of a company’s emissions in commitments on gender equality, the waste pickers are being trained in new skills increased productivity for its customers most sectors, often accounting for especially with regard to diversifying including urban gardening. Whilst the programme (65% of whom are women), whilst providing between 65 - 95% of a company’s traditionally male-dominated targets both male and female waste pickers, the decent incomes for its salesforce of over total emissions.41 Mars, for example, workforces. This toolkit focuses on majority of beneficiaries of the programme have 10,000 rural women entrepreneurs.48 states that 80% of their emissions scope 3 emissions, but companies been women. In 2020 the programme saved 725 come from their agricultural value should also consider gender and MT of CO2 and by the end of 2021, the Body Shop chains, primarily from raw materials climate action together as they reduce aim to purchase over 900 tonnes of recycled plastic sourced in tropical countries, including their scope 1 and scope 2 emissions. for their shampoo and conditioner bottles
16 ACTION TOOLKIT | WOMEN AND THE NET ZERO ECONOMY 17 SECTION 3 1. COMMUNICATE ACROSS SILOS GETTING PRACTICAL: FIRST STEPS TOWARDS A Key questions for climate and social colleagues to What might be the unintended consequences of our climate GENDER-JUST NET ZERO discuss together reduction targets on women and other vulnerable groups in our STRATEGY supply chain? (e.g. nearshoring garment factories to reduce How do we create carbon footprint but job losses for Asian garment workers) procurement policies that T o maximise their impact on net zero and gender equality, businesses must communicate across silos; commit to an ambitious strategy; align our gender and climate commitments? How do we create procurement policies that align our gender and climate commitments? E.g. Supply chain finance incentives?49 and collaborate for action across core business operations, philanthropic and social What are the policy changes that businesses can take to governments investment and through policy advocacy. Does our climate strategy speak and regulators, to help unlock to our social strategy, and if not, the wide-spread adoption of how can we better align them? gender-just net zero strategies? Can this alignment help us meet our ESG and overall business purpose more effectively and avoid unintended consequences? Who else in our company do What are the policy changes we need to engage with e.g. that businesses can take to procurement and suppliers? governments and regulators, “Women are vital to the growth of renewable What do we know about the to help unlock the wide- energy in emerging markets - especially profile of our workforce in our spread adoption of net zero decentralized renewables (DRE) like rooftop supply chain – is any of our gender-just strategies? solar and mini-grids. Women are 50 percent data gender-disaggregated? of the population of energy poor countries, How shall we develop a social but disproportionately affected by the lack dialogue with women in our of clean, reliable and affordable power. supply chain to find solutions to reduce our emissions and Women are important distributors and create circular models? sales agents for DRE, and are also critical decision-makers and energy consumers.” Where are the opportunities to include women in our climate Kristina Skierka, CEO, Power for All commitments – upskilling, tech transfer, sourcing from women-owned enterprises
18 ACTION TOOLKIT | WOMEN AND THE NET ZERO ECONOMY 19 2. COMMITTO AN AMBITIOUS HOW BRANDS ARE MOVING TOWARDS ACTION ON GENDER AND CLIMATE: GENDER-JUST NET ZERO STRATEGY Strategies for ESG can be located on an chains in a way that both protects PRIMARK impact spectrum, depending on the and creates value. Furthermore, Primark’s new holistic sustainability strategy, Primark Cares, commits level of commitment and the extent the success of any strategy is them to reduce carbon emissions by half across the value chain by 2030 to which such strategies form an dependent on strong commitment and simultaneously commits to improving people’s lives through equal integral part of core business activities. from leadership, supportive opportunities for women and provision of a living wage for workers The most impactful strategies are company structures and culture, in their supply chain. It also commits them to shift towards a more those which take a holistic view, and the development of relevant circular model of production through recycling.52 Primark recognise embedding action on gender and KPIs and incentives for action.50 the potential to become a more sustainable business by supporting climate into core business and supply gender equality and contributing to women’s empowerment.53 MOVING YOUR COMPANY CLOSER MARS TO A GENDER-JUST NET ZERO STRATEGY Mars has committed to reducing their total GHG emissions across the full value chain by 27% by 2025 and by 67% by 2050, from 2015 Trailing Basic Advanced/leading levels. In the short term, the focus is on preventing deforestation and forest degradation related to sourcing raw materials; increasing ALIGN No Net Zero pledges Separate net zero Holistic strategy to achieve net carbon sequestration and improving agricultural practices.54 In a STRATEGY e.g. not signatory of strategy and separate zero and achieve equality central separate gender strategy, Full Potential Platform, it states ‘where Race to Net Zero. sustainability strategy. to core business and purpose we source raw materials, we’re investing with a range of partners in including across scope 3. No sustainability long-term approaches to bolster women’s economic empowerment plan that includes and access to opportunity’. This includes ‘programmes with gender commitments partners in cocoa, shea, rice, mint and vanilla supply chains’.55 e.g. UN Women Empowerment Principles (WEP’s). MAP No awareness of Track where scope Strategy to address Scope L’ORÉAL OPPORTUNITIES indirect scope 3 3 emissions exist in 3 emissions and identify L’Oréal has made both gender and climate integral to its overall business AND RISKS emissions and how the supply chain. opportunities to mitigate strategy, this includes women’s leadership in the company - women to tackle them. risks and include women and Track where the other vulnerable groups in account for 46% of the Board and 58% of L’Oréal’s brands are headed by No awareness of biggest impacts will reducing emissions. Where full women; and a consistent effort to drastically reduce its CO2 emissions workforce and be on vulnerable decarbonisation is not possible, - L’Oréal reduced its CO2 emissions in 2020 by 81% in absolute terms community profiles people including consider carbon credits, e.g. W+.51 from a 2005 baseline while the Group’s production volume rose by in the supply chain. women in the supply chain. Strategy informed by a process 29%. More recently L’Oréal decided to tackle these two issues jointly. of social dialogue with impacted Women in their supply chain that produce raw materials of plant women and vulnerable groups. origin benefit from receiving mitigation and adaptation strategies to help limit the impacts of climate change on harvests and income. INVESTMENT No investment for Philanthropic / Core business integrates For example, sustainable sourcing of shea butter from Burkina Faso climate change Foundation funds costs and creates value from benefits up to 35,000 women. L’Oréal also supports the Women4Climate or equality from for community including women in net zero. Initiative which identifies and empowers female climate leaders in philanthropic funding projects that tackle . cities through an international mentorship scheme, and the She Grows or core business. climate change and gender equality the Future programme, which seeks to strengthen women farmers’ in supply chain. resilience to climate change in rural areas across the globe.56
20 ACTION TOOLKIT | WOMEN AND THE NET ZERO ECONOMY 21 3. COLLABORATE Key CHALLENGES OPPORTUNITIES for for business Business Action 61 There remains a lack of gender- disaggregated data and Work towards gender- disaggregated data to identify FOR ACTION transparency regarding who women in value chains who A GENDER-JUST CLIMATE FRAMEWORK is working in global supply are most impacted by the chains. Consider using tools like transition to net zero. Sedex’s Gender Data Report Create decent green The framework demonstrates how and conducting mappings jobs for women. business can act at three levels with other partners.57 Source from women The Business Fights Poverty on climate justice, through: Few companies are currently Climate Justice Framework innovators and entrepreneurs required to align their ESG reporting, and there are a lack in the green economy. sets out how companies of holistic reporting frameworks to use. The WEF ‘Metrics for Stakeholder Capitalism’ and the 58 Enhance the education and skills of women workers to ensure equality of opportunity can put people at the heart of climate action, 1.CORE BUSINESS CAPABILITIES AND OPERATIONS; and better ensure a more World Benchmarking Alliance’s in the green transition. equitable transition 2. new ‘Just Transition Indicators’59 PHILANTHROPY AND Ensure women can overcome the provide a useful place to start. SOCIAL INVESTMENTS; digital divide and access digital Purpose-driven companies require technology, products and services. AND leadership from the top combined The Business Fights Poverty Climate 3. Promote leadership opportunities ENGAGEMENT IN with a concerted shift in cultures Justice Framework62 sets out how for women (from supply and behaviours in all departments. companies can put people at the POLICY DIALOGUE chain to boardroom). heart of climate action, and better AND STRENGTHENING All initiatives aimed at empowering Advocate to address social norms ensure a more equitable transition INSTITUTIONS. women need to engage men as that create barriers for women e.g. that both reduces the risks of climate allies for enhanced impact. See, unpaid domestic care, gender- change for the most vulnerable for example the report ‘Engaging based violence, wage gaps and people and includes them in Men as Allies for Gender Equality rights to land and natural resources. access to new opportunities. Across the Value Chain’ by Business Fights Poverty and ABInBev.60 It is intended to spark a conversation about the actions companies can take, through collaboration across internal functions and in partnership with peers, governments and civil society. Few companies are currently required to align their ESG reporting and there are a lack of holistic reporting frameworks to use.
22 ACTION TOOLKIT | WOMEN AND THE NET ZERO ECONOMY 23 ACTIONS The table below adapts the Climate Justice Framework, LIVES LIVELIHOODS LEARNING specifically for those companies wishing to consider HEALTH AND SAFETY JOBS AND INCOMES EDUCATION & SKILLS gender equality in their net zero strategies.63 Ensure gender-mainstreaming in Invest in community regeneration Support programmes to promote PHILANTHROPY Explore ways to leverage corporate philanthropy, employee engagement community projects that enhance and economic diversification in the participation of women, food security and water access, those areas impacted by a move people from minority backgrounds LIVES LIVELIHOODS LEARNING including through climate resilient away from carbon-intensive and vulnerable communities HEALTH AND SAFETY JOBS AND INCOMES EDUCATION & SKILLS agricultural practices, projects to industries, with a focus on low-paid in climate decision making. tackle food waste and improve and informal women workers. Support efforts to integrate climate logistics and support for community justice into education programmes food banks and water projects. for schools and universities. Identify women and other vulnerable Support women’s economic Understand the skills needed CORE BUSINESS Harness policies, processes, products, services, technologies, financing mechanisms or business models. groups among employees and resilience across the value chain, for a low carbon transition and across the value chain, to mitigate including through, for example, support reskilling for women and quickly respond to health increasing women’s inclusion in to access new green jobs and and safety risks posed by climatic the workforce, procurement from enterprise opportunities. events, e.g. increasing heat levels women-led enterprises; or for Support awareness and knowledge in factories. Share outputs of financial institutions, gender-lens of vulnerable communities - these exercises with other known investing in women entrepreneurs including among smallholder farmer companies using the same suppliers. supporting green growth. communities - by providing access to Support actions to prevent gender- Understand differential impacts of climate information and knowledge. based violence and promote gender climate commitments, such as net Incubate and invest in ideas and LIVES LIVELIHOODS LEARNING equality across the value chain. zero, on women workers. Through dialogue with and involvement of solutions generated by women HEALTH AND SAFETY JOBS AND INCOMES EDUCATION & SKILLS Use brands and marketing to workers/vulnerable communities. workers (including e.g. through social promote consumer awareness dialogue with unions), or impact Work with employees, communities, of gender and climate justice assessments and surveys and plan suppliers, local communities, issues among employees, strategies for retention, redeployment Urge investors and benchmarking Support systems strengthening, Engage in policy dialogue, POLICY Engage in policy dialogue, awareness raising and institution strengthening partnerships customers and other stakeholders to suppliers, local communities, and new job creation or compensation standard-setters to require reporting including for women workers and awareness raising and partnerships build capacity to optimise women’s consumers and peer companies. and early retirement, for people most on E&S together and not in silos e.g. businesses. E.g. strengthening land to achieve more gender-equal participation in climate decision likely to be vulnerable to job loss. advocate for social equity measures and resource rights, ending child access to STEM education Partner with others, e.g. ICT making at the company level. companies, to improve reach to be included in future iterations and forced marriage and other and other skills that support In scaling up renewable energy, create Help close the digital divide of the Taskforce on Climate-related barriers to women’s participation transition to a green economy. and protect communications opportunities for women and small by increasing women’s Financial Disclosures (TCFD) in the labor force. Also consider infrastructure in vulnerable enterprises to access jobs, economic Advocate to governments and access to internet and digital reporting requirements following influencing policies around climate- communities susceptible to opportunities and energy services. suppliers for the transition to learning platforms. their mandatory rollout in 2022. related migration and relocation. extreme weather, and invest digital wage payment systems and in early warning systems. Develop and/or increase accessibility Partner with skills providers to deliver Advocate for government policies other digital financial inclusion to essential and affordable products climate-related content to vulnerable that support those negatively options that provide women with and services to support livelihoods consumers, including women. impacted by a low-carbon a step into digital economies. in the face of climatic events (eg transition, including through e.g. payment technologies insurance), and access to loans Ensure board members have targeted social protection, introduced by Mastercard in and finance by loosening usage or the skills necessary to assess and job creation and community Uganda, Egypt and Indonesia.64 financing terms, offering flexible plan for climate action, including regeneration programmes. refund policies and waiving late fees. through a gender-just lens. Invest in the resilience of women smallholder farmers in supply chains, including access to climate smart inputs and insurance. Promote climate-smart practices that deliver regenerative outcomes.
24 ACTION TOOLKIT | WOMEN AND THE NET ZERO ECONOMY 25 Future Cities Cities programme is to support CORE and the Verified Carbon Standard Mexico urban development in Mexico’s sets out to certify projects that BUSINESS cities that results in safer, resilient benefit both climate and women’s is an alliance led by PwC, supporting and more sustainable, climate- empowerment. Qualifying projects the UK’s Foreign Commonwealth Symrise friendly mobility services for citizens, then allow for the sale of W+ labelled and Development Office (FCDO) particularly for women and girls. Partnered to create NILAMPEDIA, carbon credits, which can be sold in delivering a flagship £10 million an offline Facebook platform that to individuals, organisations and Prosperity Fund programme in enables women in Indonesia to access investors to finance impactful Mexico. The objective of the Future useful information on sustainable programmes that benefit women. farming whenever they can access a phone, regardless of whether Mondelez they have connectivity at that CARE and Global Forest Watch time. This approach is particularly partner on the Cocoa Life programme, useful in communities in which men are the gatekeepers/primary to boost cocoa farmers’ resilience PHILANTHROPY/ Fashion to climate change. They have owners of mobile technology. mapped over 167,790 farms across SOCIAL Makes Change Ghana, Côte d’Ivoire, Indonesia, The INVESTMENT is a project of Rockefella Philanthropy Ethical Tea Dominican Republic and Brazil, Advisors, which connects brands, Partnership to identify at-risk areas. Cocoa Life Root Capital consumers and stakeholders in centres women’s empowerment, the fashion industry to deliver partners with GIZ and Kenya Tea introduced Gender Equity Grants and includes reforestation, women’s empowerment and climate Development Agency (KTDA), which to help build gender equity and sustainable farming, Community action together. Donations from organises and supports 650,000 tea climate resilience in small agricultural Action Plans, access to VSLAs, and brands, customers and renewable farmers, to provide gender-responsive businesses in Mexico, Honduras action on gender-based violence. energy suppliers support women’s training on climate-smart agriculture. and Guatemala. Working with empowerment programmes, such Their climate change programmes local cooperatives, they developed as Empower@Work Collaborative, include support for reforestation, The InsuResilience tailored initiatives specific to local a joint initiative of United Nations reducing tea factories’ carbon Investment Fund challenges. They also helped ILO-IFC Better Work, BSR emissions, women-run tea nurseries cooperatives to identify the Set up by KfW, the German HERproject, CARE International, growing climate-resilient strains of most vulnerable women in their Development Bank, is a public-private and Gap Inc.’s P.A.C.E. program. tea, women’s empowerment and membership and supported them to partnership that aims to strengthen training on gender-based violence. introduce climate-smart practices. the resilience of low-income households and MSMEs in developing The W+ Standard countries to extreme weather African Women in events and natural disasters - which Agricultural Research and developed by WOCAN quantifies women’s social and economic disproportionately impact women. It Development (AWARD) empowerment arising from does this by increasing the availability strengthens gender-responsive climate action projects such as of micro-loans and insurance products agricultural research and innovation the introduction of biogas stoves to vulnerable populations, factoring in Africa. It grows the capabilities or tree planting. There has been gender into its decision-making. of individual scientists, works with growing interest from businesses research institutions to embed and investors in the co-benefits of gender-responsiveness in policy and investing in climate projects, and practice, and builds a supportive a new collaboration between W+ enabling environment by increasing awareness of the need for and value of gender-responsive approaches.
26 ACTION TOOLKIT | WOMEN AND THE NET ZERO ECONOMY 27 RESOURCES Climate Justice Climate Justice Framework. POLICY Business Fights Poverty, Harvard ACKNOWLEDGEMENTS Kennedy School Corporate Social Women and Net Zero: whilst recognising the Responsibility Initiative, Change This report was written by Alice Allan and Annabel Clean Energy intersecting challenges of Beales, Business Fights Poverty, with regular input Women and the Net Zero by Degrees. A framework showing Council caring responsibilities and and advice from Cristina Bortes, Enda Doherty Economy: A briefing on how business can put people Australia’s gender based violence. at the heart of climate action. and Nicole Linney at PWC. We would like to thank changes in garment, the following individuals for their insights: Jane Women in Renewables Initiative agricultural and energy Empowering Indigenous Yale Experts Explain Environmental Nelson, Harvard Kennedy School Corporate Social aims to enhance the role of supply chains. UKAID/WOW Women to Integrate Justice. Yale University. Researchers Responsibility Initiative; Marcel Korth, Anglo women in the renewables Programme. Assessment of Traditional Knowledge and discuss the link between social American; Sam Ludlow-Taylor and Amy Morris, sector. It provides mentoring challenges and opportunities Practices in Climate Action. justice and environmental health. Waitrose; Sara Mason, Farmer Income Lab; Harriet and scholarships for individuals, facing different sectors. Climate Investment Funds. Talbot, Unilever; María José Prado Valdés, CEMEX; as well as advocacy initiatives Women’s Economic Good Agricultural Practices Finance and Investment Charlotte Hugman and Natasha Zervudachi, World including a leaders’ pledge to act Empowerment and Climate (GAP) Training. Farm Benchmarking Alliance. We are grateful to the on inclusion and promote women’s Gender & Climate Investment: A Change: A Primer. UKAID/ Africa. These include UK Foreign Commonwealth and Development voices and achievements. Strategy for Unlocking a Sustainable WOW Programme. Overview conservation and climate- Office (FCDO) for their funding and support via the Future. A detailed overview for Work and Opportunities for Women Programme. of current debates and smart agriculture for We Mean Business women farmers. investors in multiple sectors, that options for policy makers. The Work and Opportunities for Women (WOW) Coalition are considering how to invest in Climate and Women: The gender-smart climate initiatives. programme is the UK Government’s flagship recently delivered an open letter Indicators and women’s economic empowerment programme. Business Case for Action. from over 600 businesses calling Measurement Ways to Gender Smart Climate The objective of WOW is that women have BSR. A summary of why on G20 leaders to take decisive Finance: Agriculture, Food and access to improved economic opportunities business should act. Just Transition Indicators. action to limit global temperature Forestry. 2X Climate Finance through business interventions in supply chains World Benchmarking Taskforce. A sector-specific rise to 1.5ºC, ahead of COP26. It Women Leading Climate and economic development programmes. The Alliance. New indicators deep-dive for investors (further has also published research that Action: A World Within five-year programme aims to enhance the launched in 2021 and assessed sector guidance forthcoming). aggregates findings from over Reach. The Women’s Forum economic empowerment of 300,000 women against 180 companies 2000 companies’ submissions to for the Economy and Society, working in global value chains. It will achieve this (report forthcoming). WEP’s Gender Gap Analysis Tool, supported by L’Oreal and Scope 3 Resources: goal by supporting businesses, organisations highlighting actions that will BNP Paribas. An overview Measuring Stakeholder and programmes that are ready and willing Greenhouse Gas Protocol. promote gender-equal workplaces. of why business should Capitalism: Towards to act on women’s economic empowerment; Carbon Trust, World Resources consider addressing the Common Metrics and enabling players across the supply chain Institute and WCBSD. Standards, The Climate Ambition twin challenges of gender Consistent Reporting of ecosystem to drive change; and influencing guidance, tools and training for Support Alliance and climate, including Sustainable Value Creation. the UK and global agenda on women’s business and government to future scenarios. World Economic Forum. (CASA) measure and manage climate- economic empowerment. WOW is delivered WEF’s definition of the four by a consortium of global experts on women’s Women in Cotton. Cotton warning emissions, including supports a network of women pillars needed for holistic ESG economic empowerment research, programme Connect. A summary of the Scope 3 Calculation Guidance. negotiators from climate- reporting; people, planet, design, and delivery – including PwC, BSR, CARE impacts of climate change vulnerable countries who are prosperity and principles WCBSD’s Value Chain Carbon International and Social Development Direct. on the lives of women underrepresented in climate for governance. Now Transparency Pathfinder: Enabling cotton farmers in India. negotiations, as well as addressing adopted by 50 companies. decarbonization through Scope the UNFCCC gender action plan. Action Aid POWER Learning 3 emissions transparency. Hub. A learning tool to help WBCSD. Introduces a new organisations consider initiative to decarbonize industry how to economically through data transparency. empower rural women
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