Barbara BalkeandThomas Östros

Opinion | For a greener, fairer and more prosperous world, put more women in charge

Women tend to make better, greener choices in life and business. As entrepreneurs, investors and CEOs, they play a critical role in climate leadership

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IMF managing director Kristalina Georgieva and US Treasury Secretary Janet Yellen, two of the most powerful women in the world, arrive for a meeting in Washington on July 1, 2021. Women play a critical role in driving economic growth and creating jobs with positive social, environmental and climate spillovers. Photo: AFP

Barbara BalkeandThomas Östros

Published: 1:30pm, 9 Mar 2023

How can we meet the world’s climate goals? We can start by putting more women in charge. That will give us a much better chance of not only controlling global warming but also achieving greater prosperity along the way.

Emerging research underscores the business and development case for applying a gender lens to climate-related investments. It also highlights the critical role women play in climate leadership.

Recent research from the European Investment Bank (EIB) shows that women-led companies tend to have higher environmental, social and corporate governance (ESG) scores, and that businesses with a greater representation of women in leadership positions have better track records of adopting environmentally friendly practices.

Similarly, women leaders are more likely to invest in renewable energy, leading to reduced greenhouse-gas emissions and improved environmental outcomes, and women-owned businesses are more likely to pursue greater energy efficiency and practices such as recycling. Banks run by women lend less to big polluters.

In the workplace, female leadership is associated with increased transparency regarding environmental footprints, and a higher percentage of women on a corporate board is known to correlate positively with the proper disclosure of greenhouse-gas emissions.

A critical mass of women on a board leads not only to better climate outcomes but also more innovation. Given these findings, it is no surprise that the world’s most sustainable cities are led by women.