The ongoing global discourse regarding climate change emphasises the need to address the disproportionate impact of climate change on women and the necessity of involving them in climate action to achieve success.

Pakistan is one of the countries experiencing the most severe climate change consequences, costing the economy $38 billion annually. Additionally, the World Economic Forum’s Gender Gap Index highlights Pakistan’s position among the countries with the most significant gender gaps. The gender-climate nexus presents an opportunity to address both areas.

Pakistan acknowledged the nexus between gender and the environment in its National Conservation Strategy, adopted in 1992. This was followed by the National Climate Change Policy, adopted in 2021, whose goal is to ‘ensure that climate change is mainstreamed in the economically and socially vulnerable sectors of the economy, and to steer Pakistan towards climate compatible development’. Using this as a basis, the Climate Change Gender Action Plan (2022) identifies key steps that underlie the need to incorporate a role for women in the decision-making process.

From an economic perspective, this can add immense value as it increases diversity in the decision-making process. Furthermore, to future-proof its economy, Pakistan must adapt — it needs to prepare its communities, people, and businesses to adapt to the changing environmental conditions.

Studies suggest that companies with better gender diversity are more likely to reduce energy consumption and water use

Women can be pivotal as sustainable consumers, decision-makers, and climate leaders in the business community. Integrating women’s unique perspectives is important to pursuing effective and innovative climate mitigation and adaptation strategies and managing climate-associated events.

Studies suggest that companies with better gender diversity are more likely to reduce energy consumption, water use, and greenhouse gas emissions. A study reviewing 2,000 companies between 2009 and 2019 showed a direct correlation between an increase in the percentage of women in management and a decrease in carbon dioxide emissions.

Additionally, research shows that women tend to be less overconfident, perceive risk more, and are less likely to underestimate the consequences of their environmental decisions or overestimate their problem-solving skills.

There is growing recognition of the business case of aligning with the gender-climate nexus, which lies in the risks associated with climate change impacting women disproportionately.

As women are involved in the value chain as consumers, workforce, and communities, climate shocks impacting women manifest through reduced product sales, workforce productivity, and reputation.

Moreover, women are a significant part of the agribusiness supply chain in Pakistan. Climate change has nuanced impacts reverberating to regional and district levels, and feedback by engaging women can help companies protect raw materials and manage risks.

Other advantages of realising this nexus include that it drives productivity and innovation, especially within sectors like agriculture and apparel, which deliver multiple co-benefits, including livelihood development and improving food security, leading to financial stability and both protecting and diversifying the consumer base.

Companies have the opportunity to make progress towards both climate change and gender equality by taking several steps. Firstly, increasing diversity in various positions can contribute to future-proofing the organisation against climate change and collecting gender-segregated data throughout the value chain.

Secondly, companies can engage with women in the supply chain by identifying the impact of climate change on them and by encouraging women-owned businesses to enhance their resilience. Thirdly, product design and innovation can benefit from including women’s feedback and investment in women entrepreneurs.

Engaging in initiatives that focus on climate and gender can benefit the organisation and its employees. These initiatives can help companies improve recruitment and retention by emphasising diversity in technical and male-dominated roles.

Additionally, there is growing regulatory attention on gender equality and managing climate-related risks, which can benefit companies actively addressing these issues.

By publicly disclosing their efforts to align their business models with gender and climate, companies can also attract investments prioritising environmental and gender equality considerations. In the long run, such initiatives can lead to the development of products that appeal to a broader market base.

As businesses increasingly realise the importance of non-financial aspects that can influence their business models, organisations require more collective knowledge.

Companies can address this gap in two ways. First, they can build capacity by reviewing international toolkits and guides outlining best practices and steps they can take to participate in climate action.

Second, they can learn from their peers by engaging with them through shared platforms. Platforms provide opportunities for networking, discussing issues, and researching solutions.

Through the collaboration between the International Finance Corporation and the Pakistan Business Council, 22 companies have pledged to move forward on gender and climate. The model initiative enables collective learning and supports companies in exploring the intersectionality of specific issues in a local Pakistani context.

The climate-gender nexus presents a significant opportunity for businesses to future-proof their operations against the impacts of climate change while promoting gender diversity. By recognising the common but differentiated responsibilities in the role to play where society interacts with business, companies can address the impact of climate change to their advantage.

The writer is the Head of Initiative, Centre of Excellence in Responsible Business at the Pakistan Business Council

Published in Dawn, The Business and Finance Weekly, March 11th, 2024