Can Investing in Women Save the Earth?
In recent years, I have been astounded and inspired by the ever-growing voice, impact and diversity of women and girls on the frontline of myriad efforts to save the earth. From zero-waste initiatives and green businesses, to global youth activism and environmental policy reform, women and girls of all ages, races and backgrounds have been leading the charge. This made me think: Is there an innate reason why women excel and/or feel compelled to do this work? And, more importantly, on this 51st anniversary of Earth Day, what can we do to ensure that women succeed?
Women, Climate Justice and Policy Reform
Perhaps the most high profile space in which women and girls are taking the lead is the climate justice movement. This movement has been spearheaded largely by young women and girls — from indigenous land and water protectors, to youth climate activists — spanning 150 countries and backed by millions of youth. The indomitable Greta Thunberg elevated their efforts to the global stage, igniting the School Strike for Climate movement and gaining audience at the United Nations, the U.S. Congress, and other key forums convening world leaders. But she is one of many. Girls around the world — from Mexico, to Egypt, to the Marshall Islands — are organizing, protesting, and not only demanding but articulating bold environmental policy reform.
In 2019, along with three other moms (and my proudly feminist husband), I took my kids to the global Youth Climate Strike in Washington DC. From the start of the rally, it was clear that the majority of the organizers and youth activist leaders were girls. Girls as young as age nine representing the rich ethnic and racial diversity of America took to the stage, one after the other, imploring us with eloquence beyond their years to take action to save the earth. The peaceful rally took place on the steps of the U.S. Congress, yet the only member of Congress to step out to support the rally was — yes, you guessed it — a woman: Ilhan Omar, whose 17-year old daughter was among the mesmerizing youth leaders speaking. These girls were undaunted by the power of politicians and big business, and committed unequivocally to protecting the earth from further demise. Speaking of the U.S. Congress, it should come as no surprise that our most outspoken advocate of the Green New Deal happens to be our youngest ever female member of Congress: Alexandria Ocasio-Cortes.
Like AOC, the young climate activists will grow up to be the next generation of business owners, policy makers and community champions, driven by both sustainability and social justice principles. For them to succeed we need to nurture their leadership skills and invest in their education, we need to equip them with the resources and platforms to build broad and durable networks, and create space for them to amplify their voices and impact. Finally, from among this amazing pool of global talent, we need to encourage more girls to become scientists, engineers and policy makers, together they can ensure our transition toward a more equitable and circular economy.
Women Waste Warriors
While young women and girls lobby politicians and advocate for policy change, countless women worldwide are actively advancing the Three R’s (Reduce, Reuse, Recycle) and racing to stem the tide of ocean plastic pollution. From engineers to scientists to labor activists, women of all professions and backgrounds have been entering the waste management field in recent years, despite the fact that it is among the most male-dominated sectors in the economy everywhere. Undaunted by their minority status and the risks of sexual harassment and gender discrimination that pervade the sector, women are pushing governments, corporations, and communities to become more sustainable and inclusive. Indicative of the growing recognition of women’s critical role in the sector, a few months ago the International Solid Waste Association (the world’s largest international network of waste professionals and companies, and the leading research body for waste management) established the Women of Waste Task Force to document, strengthen and promote women’s role in waste management and the transition to a circular economy.
Perhaps the least visible yet among the most important women on the frontlines of the war on waste are informal waste pickers. Throughout emerging markets and developing countries, millions of these women work in the harshest conditions sorting recyclables from landfills, dumps and the streets, regularly facing harassment and public ridicule. They handle hazardous waste with no physical or social protections and for dismal pay. Yet, informal women waste pickers fill a critical public service gap in pervasively dysfunctional municipal waste collection systems. In effect, they are often the last line of defense preventing trash, and most notably plastics, from entering the oceans. To appreciate the importance of their work, it should be noted that approximately 8 million metric tons of plastics enters our oceans every year (think one dump truck per minute), of which 90% sinks to the ocean floor destroying marine life and reefs, depleting fishing grounds, damaging livelihoods and human health.
Despite their onerous circumstances, women waste workers are changing the way local governments view their work and the economic value of waste in general. In the Philippines, for example, women waste picker cooperatives have partnered with city governments and serve as “Eco Police,” helping to enforce single-use plastic bans (e.g., plastic bags), raising awareness of the 3Rs, spearheading community clean up initiatives, and generating revenues through upcycling projects (such as the creation of pavers (eco-bricks) and even fashion items made of plastic waste).
Throughout Asia, Africa, and Latin America, a growing number of women entrepreneurs are starting recycling companies and upcycling enterprises, though constrained by a systemic lack of access to finance, markets, and business networks. Recognizing their economic and environmental value, donors and the private sector are finally stepping up with increased business support and private capital investments. One example is USAID’s $100 million partnership with the private equity firm Circulate Capital (funded by multinationals such as Coca-Cola and Unilever) to combat ocean pollution in South and Southeast Asia. Their first investment was in Tridi Oasis, an Indonesia-based, women-owned recycling company that recycles plastic bottles into new packaging and textiles that are made of 100 percent post-consumer, recycled plastic.
To enable women in the waste sector to succeed, we need to increase access to finance for women entrepreneurs to start and grow recycling businesses; attract more women professionals to work in waste management and recycling; advocate for policy reforms that recognize informal waste workers’ status; and nurture women’s leadership and representation across all levels of the recycling value chain. Breaking the gender barrier in waste management will take concerted and protracted effort to conquer male bias and level the playing field for women professionals and entrepreneurs.
Women Entrepreneurs and the Business of Sustainability
Women entrepreneurs — more so than their male counterparts — are driven by the motivation of making a difference in the world. The Pew Research Center also finds that women are more likely than men to make major lifestyle changes to reduce the effects of climate change, which translates to sizeable market potential for women-owned green businesses. When it comes to business, the IFC has compiled extensive research clearly connecting women in business leadership to improved environmental, social and governance (ESG) standards — the cornerstones of sustainability.
One study of Fortune 1500 companies conducted at UC Berkley’s Haas School of Business and sponsored by KPMG found that companies with more women on their boards are significantly more likely to have improved ESG performance. This translates to improved energy efficiency of operations, reduction in carbon emissions, reduction of packaging, and investment in renewable power generation. Importantly, to affect lasting change in this regard, women’s participation must go beyond the token individual or the team of two women (often perceived by their male counterparts as co-conspirators). Companies with at least three female board members were found to have better ESG performance. However, very few companies meet this threshold — including only three of the 1,500 companies surveyed at the time of the study: Kimberly-Clark, General Motors, and Walmart.
We also know from countless studies that gender diverse teams yield better performance, higher returns, increased sales, more efficient use of capital, and greater innovation. To illustrate how all this directly benefits the environment, not to mention the economy, the top 20 most gender-diverse energy utilities outperform less diverse ones. In short, linking gender equality and women’s empowerment with sustainability is a win-win-win: for women, companies, and the earth.
In a world teetering on the cusp of a dual climate and economic crisis, we need companies committed to pursuing innovative solutions to sustainability challenges. For these companies to succeed, they need more women at every level and within leadership positions, in particular. We also need more women entrepreneurs starting and growing sustainable businesses. But with venture capital funding for women founders worldwide at less than three percent and even less for women of color and marginalized groups, it’s also clear we need to change the way investments are made. In short, we need more women investors to more quickly overcome investor bias and tackle the gender investment gap to fund more women entrepreneurs. Women investors have the power to unlock capital flows for women-led startups, and to ensure more women’s representation on corporate boards, thereby driving companies toward a more inclusive and sustainable future.
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Delila Khaled is an Impact Partner with Global Bio Fund, and an international development expert specializing in inclusive finance, women’s economic empowerment, waste management and recycling.
