Avoid a Major Blind Spot: Gender-Smart Investing is Risk Management

Apr 21, 2021 | Nikki Walker
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If a company is not focused on gender diversity and its economic impact, does it really understand the needs of its customers? This question, asked by Suzanne Biegel, co-founder of Gender-Smart Investing, was the central matter for debate during a breakout session last week at GreenFin 21. Biegel was highlighting a central disconnect many investors have in understanding the importance of gender balance when considering investments related to climate action and solutions: While gender diversity may not directly lower emissions, companies with female representation on the board level are more likely to put the necessary steps in place to reach climate innovation, such as setting decarbonization strategies, according to the panelists. According to a recent report by BloombergNEF, a company with 30 percent or more women on its corporate board produces superior climate governance and innovation. The report focuses on innovation in three areas: global electric utilities; oil and gas; and mining sectors.