Investing in Gender-Transformative Climate Action

The challenges of climate change and gender inequality are deeply intertwined, yet they are often addressed in silos. How do they intersect in the practices of impact finance and enterprise support? Dive into some actionable takeaways!

Understanding the Relationship Between Gender and Climate  

The social purpose sector increasingly sees that gender equality and climate justice are interconnected. Women and disadvantaged groups are disproportionately affected by climate change, facing greater challenges across health, livelihoods, and in society. At the same time, women are vital leaders in transitioning to a low-carbon economy. They are innovators, leaders, entrepreneurs, workers and customers in climate related fields. But gender inequality often limits how effective these strategies can be. 

So, what does it mean to be “gender-transformative” in the climate space? Our experience and that of our peers and partners shows that enterprises should define this in their unique contexts. 

Let’s look at Solar Green Energy Cambodia (SOGE). They have provided over 2,300 solar irrigation water pumps, helping farmers increase their income and agricultural yields by up to 50% despite rising climate risks.  

SOGE’s CEO Thida Kheav has participated in iDE’s ‘SHE powered’ programs and Oxfam’s gender advisory support programme.  According to SOGE’s HR policy gender equity means ensuring “everyone is treated equally, regardless of their gender.” Their commitment to gender equity is reflected in their flexible payment plans for single mothers and discounts for low-income women, demonstrating how tailored financial solutions can promote equity.

Women’s Leadership in the Green Economy

Women are already driving climate solutions, leading innovations in clean energy, sustainable agriculture, and climate adaptation. They often use established and locally rooted techniques with positive environmental impacts. But it’s not always obvious how significant their contributions are. Creating awareness and visibility is crucial. Highlighting women-led initiatives and their role in combating climate change can inspire others and amplify their impact.

A challenge is measuring and creating evidence of their impact. This is often associated with high cost of measuring climate impact, which is unaffordable for most entrepreneurs in the countries where it is most needed. Incorporating affordable, user-friendly tools into investment schemes can bridge this gap: measuring reductions in CO2 emissions or improvements in resource efficiency could help women entrepreneurs track and showcase their contributions. This would empower them to scale their efforts while attracting further investment.

Additionally, creating networks and communities of practice for women entrepreneurs can foster peer learning and collaboration. One example of this is The Sustainable Business Alliance in Cambodia, initiated by Oxfam and Konrad-Adenauer-Stiftung, which showcases sustainable practices and connects entrepreneurs with investors. It amplifies the efforts of women-led green enterprises.

Innovative Financial Tools for Work on Gender and Climate

Access to finance remains a critical challenge for underserved entrepreneurs, especially women. Financial products must be tailored to their unique needs while addressing the high costs of climate-smart technologies. We see a strong need for flexible, impact-linked financing tools that tie gender and climate outcomes to financial incentives.

In Pakistan, SAFCO Microfinance introduced climate-resilient financial products, such as flexible loans for rebuilding after flooding or other climate disaster or for the purchase of agricultural inputs designed for climate adaptation. Rukhsana, one client, used these products to rebuild her farm after devastating floods. By purchasing climate-resilient seeds and tools, she ensured her family’s livelihood while preparing for future shocks. Such tailored solutions highlight how financial tools can support women to recover and thrive.

We also see a role for innovative products like weather-based insurance and climate-resilient loans. These tools provide immediate relief and long-term security for businesses affected by climate disasters, ensuring that entrepreneurs can adapt and rebuild.  

Centring Entrepreneurs in Impact Management

Robust impact management is essential for aligning financial investments with gender and climate goals. Metrics such as reduced CO2 emissions, waste reduction, and resource efficiency or sex-disaggregated indicators are critical benchmarks. However, standardized impact measurement frameworks like IRIS+ or SDG Impact Standards must be adapted to reflect the unique contexts of entrepreneurs, and combined with qualitative assessments.

Good Return, a social purpose organisation based in Asia-Pacific, highlights the importance of engaging directly with entrepreneurs. By conducting interviews with women business owners in Cambodia and Fiji, they can uncover success factors that are often overlooked.

They interviewed Nisrat Nazeen, CEO of Aromas Fiji, an online artisan soap store based in Fiji, who explained to Good Return how flexibility and autonomy in her schedule—allowing her to care for her son while running her business—defines success for her. Nisrat can also demonstrate environmental successes that might be missed by usual metrics, like repurposing coconut shells for heating during soap production. These practices reduce waste and showcase how sustainable methods can drive positive environmental outcomes.

Engaging entrepreneurs in designing their own measurement framework not only respects their diversity but also ensures that investments address their real needs. This approach helps uncover and prioritize success factors important to entrepreneurs, often missed by generic, investor-driven metrics.

Aligning Financial and Non-Financial Support

To meet the needs of diverse entrepreneurs, financial and non-financial support must work hand in hand. Beyond funding, non-financial interventions—such as leadership development and gender-focused technical assistance—are crucial for fostering transformative enterprises.

Creating safe spaces where women can reflect on gender dynamics within their businesses builds personal confidence and leadership skills. Programs must also account for women’s caregiving responsibilities, offering flexible schedules and pacing. Programmes can integrate climate risk assessments and green business modelling into their work, helping SMEs adopt sustainable practices and build resilience.

Promoting gender equality in business policies and practices, from leadership roles to supply chains, is another critical area. This requires integrating a gender lens throughout the investment process, from due diligence to impact measurement.

Scaling Inclusive, Climate-Resilient Solutions

These stories from SAFCO Microfinance, Aromas Fiji, and SOGE, illustrate the transformative power of aligning gender equality with climate justice for women. Tailored financial tools, such as climate-resilient loans or flexible finance, combined with non-financial support are essential for creating lasting change.

To drive meaningful impact, we must go beyond addressing gender and climate challenges in parallel unconnected ways. Designing participatory programs that centre women’s voices, amplify their leadership, and equip them to measure their impact will foster both social and environmental resilience. By scaling inclusive solutions and aligning support systems, we can ensure women leaders are supported and visible in the green economy and create a more equitable, sustainable future for all.

This blog grew out of a session that Oxfam, iDE and Good Return co-facilitated at the 2024 ANDE Annual Conference in Bangkok, where the authors explored the nexus between gender and climate action with peers from across the impact finance sector.