The business benefits of having more women in leadership positions are well documented. Companies with women at the helm tend to outperform their benchmarks. According to Quantamental Research, a division of S&P Global Market Intelligence, companies with female CFOs generated $1.8 trillion more in gross profit than their sector average. Similarly, companies run by female CEOs, saw more value appreciation^[1]. Gender diversity in corporate leadership yields great results, especially in terms of revenue generation and asset accumulation^[2].

What is less known, however, is that women can be powerful agents of change that can also drive the green transition and your sustainability strategy. Gender equality is interlinked to environmental sustainability and good governance.

Women are disproportionately impacted by climate change. According to the UN, 80% of those displaced by climate change are women and women and children are also the ones most impacted by pollution^[3]. However, they are also the ones that tend to adopt innovative and preventative measures on climate actions. According to the OCED, women’s involvement in climate action has resulted in more inclusive and more targeted interventions^[4].

In terms of leading in times of crisis, women seem to be outscoring men on most leadership competencies including, taking initiative, inspiring and motivating others, building relationships and developing them, displaying honesty and integrity, championing change and fostering collaborations and teamwork^[5]. These are all the elements needed to engage stakeholders in your sustainability strategy, bringing them along on the journey and inspiring them to help you realise your sustainability targets. 

Furthermore, women are slightly more likely than men to be concerned about climate change and global warming. They perceive environmental degradation as a higher risk and they worry more about the associated health risks^[6].

In addition, women can play a key role with regards to nature preservation and minimising biodiversity loss. Over 80% of the remaining biodiversity is in the lands of indigenous communities, where women retain crucial roles as caretakers of water, land and nature. For companies that want to be true to their commitments on minimising negative impacts and restoring nature, this knowledge and these relationships are key.

Last, but not least, gender equality and women’s empowerment is one of the 17 United Nations Sustainability Development Goals adopted by all UN member states in 2015. SDG 5, gender equality and women’s empowerment, includes a number of targets which can be adopted by business such as monitoring equality and non-discrimination in the workplace, promoting women in leadership positions, recognising time spent by women in care work (childcare, elderly care) and allowing for that, rather than penalising them. 

Climate change, biodiversity loss and gender equality are inextricably linked. Women are key stakeholders, not only as part of your employees, but also as agents which can help address climate change and drive sustainability. Women can not only lead the social pillar of your sustainability strategy but form the environmental and governance pillars as well. Female leadership and women’s empowerment can be a critical success factor not only for your sustainability strategy but also for the transition to a more sustainable global economy. 

_{^[1] Study: Female execs generated higher profit, stock price returns than male peers, 16 October 2019, https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/54788813}

_{^[2] Women-led companies outperform men’s in the Fortune 1000 top companies, 14 December 2023 https://startups.co.uk/news/fortune-1000-top-companies/#:~:text=A%20recent%20analysis%20by%20money,receiving%20less%20funding%20in%20general.}

_{^[3] Why women are key to solving the climate crisis, https://www.oneearth.org/why-women-are-key-to-solving-the-climate-crisis/}

_{^[4] OECD, The gender equality and environment intersection: An overview of development co-operation frameworks and financing, November 2023 https://www.oecd.org/dac/gender-equality-environment-intersection.pdf}

_{^[5] Research: Women are better leaders during a crisis, 20 December 2020, https://hbr.org/2020/12/research-women-are-better-leaders-during-a-crisis; Why female leadership is crucial to tackle climate change and other crises, 23 November 2021 https://www.weforum.org/agenda/2021/11/why-female-leadership-is-crucial-to-tackle-climate-change/}

_{^[6] https://climatecommunication.yale.edu/publications/gender-differences-in-public-understanding-of-climate-change/}

About Black Sun

Black Sun is a global group of strategic advisors, consultants and stakeholder engagement specialists. We believe that brands and businesses can have a big impact on our society  – they can shape more ethical practices, build more inclusive communities and deliver more sustainable performance. Ultimately, they can spark positive change in the world.

We partner with visionary companies to define and communicate their purpose, strategy and culture and bring to life their value creation story. Our services and solutions directly address the business-critical concerns of today;  best-practice disclosure and accountability through reporting;  protecting reputation and building trust with digital communications and helping businesses to effectively communicate their long-term responsibility and sustainability story.