Volume 5: Gender-Based Discrimination

Gender-Based Discrimination 

Industry updates 

$75 Billion Clean Energy Initiative Hits the London Market 

The Climate Investment Funds (CIF) have initiated a $75 billion clean energy bond program, now listed on the London Stock Exchange. This decade-long initiative aims to mobilise substantial capital for renewable energy projects, particularly in developing nations. The program is expected to attract significant private sector investment, accelerating the global transition to sustainable energy sources. UK Prime Minister Keir Starmer emphasised the fund's potential to generate $75 billion over ten years, highlighting the UK's commitment to leading in green finance. This development underscores the increasing role of financial markets in addressing climate change and supporting the shift toward a low-carbon economy. 

Archer’s Japan Deal: The Dawn of a New Aviation Era 

Archer Aviation has secured a monumental deal with Japan Airlines (JAL) and Sumitomo’s Soracle joint venture to deliver up to 100 electric vertical take-off and landing (eVTOL) aircraft, valued at $500 million. These innovative aircraft are designed for zero-emission, short-distance urban flights, with the capacity to revolutionise travel in congested metropolitan areas. Set to debut at the 2025 World Expo in Japan, Archer’s eVTOL aircraft promise rapid deployment and eco-friendly mobility, ideal for Japan's forward-thinking infrastructure. Soracle aims to integrate these aircraft into urban mobility systems, offering a practical and sustainable alternative to traditional air travel. This isn’t just a deal; it’s a leap into the future of aviation. Archer’s partnership propels Japan into the spotlight as a leader in clean transportation, paving the way for a bold, electric era in urban air travel. 

UK Prime Minister Starmer Commits to Emissions Cuts at COP29 

At the United Nations COP29 climate summit in Baku, UK Prime Minister Keir Starmer unveiled an ambitious target to reduce Britain’s greenhouse gas emissions by 81% by 2035, surpassing the previous 78% goal. This aligns with recommendations from the UK’s climate advisory committee and reinforces Britain’s position as a leader in global climate action. Starmer emphasised that achieving this goal would not require lifestyle sacrifices, focusing instead on transitioning to clean electricity by 2030. He also called for greater private sector investment, highlighting the insufficiency of public finance to meet climate goals. The announcement comes amid global discussions on climate finance, with developing nations urging wealthier countries to provide substantial financial support. Britain’s strengthened climate target showcases its commitment to driving international climate progress. 

SEC Cracks Down on ESG Greenwashing 

The U.S. Securities and Exchange Commission (SEC) fined Invesco Advisers Inc. $17.5 million for misleading investors about the extent of its ESG integration. Between 2020 and 2022, Invesco claimed that 70% to 94% of its assets were ESG-integrated, including passive ETFs that didn’t actively use ESG factors. The SEC found Invesco lacked clear policies defining ESG integration, leading to overstated claims. Invesco has agreed to the settlement without admitting or denying the findings, stating it has ceased reporting firm-wide ESG integration since 2022.This enforcement action highlights growing regulatory scrutiny on ESG claims, emphasising the importance of transparency and accuracy in sustainable investment disclosures. 

Longer Article

Introduction 

We have all heard about gender-based discrimination in the workplace. In simple terms, this means that people face challenges and are at disadvantages based on their gender.  A World Bank report found that approximately “2.4 billion women of working age are not afforded equal economic opportunity” on a global scale, and this is a worrying statistic. Although some progress is evident, discrimination of this type is still prevalent all around the world. However, the issue is much more complicated than it first seems, and there is an added layer of complexity when comparing the Global North and South.  

Almost all statistics show that the trend for gender-based discrimination at work is more severe in countries in the Global South and more felt by women (with a very large difference in comparison to men). More often than not, men are not even mentioned in the statistics, which does not mean that they do not experience discrimination based on their gender at times. And, unfortunately, for those who are non-binary or trans, the situation is even more dire. 

In what ways is this discrimination manifested? Lower income, fewer opportunities, worse career progression, different treatment, lower number of female leaders and managers across all levels and organisations, sexual assault and harassment, and poorer performance in very economic terms. Consequently, these lead to less economic power, higher reliance on others, mental and physical health challenges, and more. Taking an even broader view, this has an impact on family dynamics, education and development of children, and to some extent the general development in the country, perpetuating this harmful cycle.  

Turning things around, we need to look at the causes to figure out what to do. Firstly, culture, gender stereotypes, religion, and societal norms all play a role in how gender is perceived and what behaviours are deemed appropriate. Challenging these is extremely important yet difficult, and a very slow process. The traditional roles of women can prevent them from moving into employment or progress similarly to their counterparts. Childcare still mostly falls to the women, especially in developing countries. Hence, support in childcare, education, and empowerment from a young age and throughout their lives are crucial parts of this process.  

A few other factors that have an impact on gender-based discrimination are national laws and regulations, and the organisational culture and norms. Some countries, all in the Global South, still do not have any laws relating to this issue, and in several countries, they were introduced only relatively recently. A company specific issue is that even if there is a code of conduct it is not always followed, leading to discrimination. Assurance of compliance and effective leadership are necessary.  

Although some of the solutions seem obvious, due to the complexity of this and any other ESG issues, there is no easy and quick fix, but it requires effort and persistence, and continuous re-evaluation. 

Gender Discrimination in Pakistani Corporations 

A Focus on Microfinance and Leadership Boards through an ESG Lens 

The World Economic Forum’s (WEF) Global Gender Gap report of 2023 placed Pakistan at the rank of 145 out of 146 countries, making it the second worst country for equal economic opportunity. Despite making up 49% of Pakistan’s population, women’s participation in the Pakistani corporate world remains insufficient with only 4.5% of women being hired in senior managerial and legislative positions. A multitude of socio-economic, legal and cultural factors contribute to the status quo. For instance, 95% of women’s labour force operated under no legal written contract as of 2018, which can be explained by the fact that most women work in agriculture- a sector with little to no organisational structure. This Dynamic of gender hierarchy in top echelons in Pakistani corporations, particularly in areas like microfinance and leadership boards, directly intertwines with the ‘Social’ and ‘Governance’ aspects of ESG that claims that gender equality is a crucial component of financial growth and sustainable development.  

Adding onto the idea of the broader framework of ESG and finance, a McKinsey Report from 2015 suggested that in an ideal scenario of equitable workplace representation, an additional 28 trillion dollars could be attributed to the annual 2025 GDP. Four years later, a Stanford study, inspired by the abysmal Google Gender diversity announcement, analysed the impact of gender diversity on investor decision-making. It concluded that investors were more likely to put their faith in a company’s stock price had the company published a transparent report of gender ratio that outperformed Google’s quotient. Google, despite being an Industry leader, had a workforce with a 70:30 male to female ratio. From a broader intersectional lens, only 3% of the female workforce were Hispanic, 2% were Black, with a lack of data on other marginalised groups such as transgender, indigenous or disabled employees.  

Similarly, the Pakistan Stock Exchange (PSX) revealed that, within the 550 listed companies, there was only one female for every 9 male directors. Whilst the Securities and Exchange Commission Pakistan (SECP) introduced a Code of Corporate Governance in an attempt to increase equality, this inadvertently birthed a culture of ‘Tokenism’ and ‘Nepotism’ where 91% of the female directors appointed had either no actual say or were related to the sponsors or notable shareholders. 

On the same note, Pakistan officially surfaced on the microfinance map, in 2001, when the State Bank of Pakistan, passed the microfinance ordinance. This was a huge step for women in Pakistan, especially those in rural areas to start up their own entrepreneurial journeys, whether to support their families or escape abusive environments. While it assisted in dismantling traditional constraints, a World Bank report stated that 50-70% of microloans have been used by male relatives who tactically manipulate women to access credit, leaving them in default 

While ESG frameworks and microfinance initiatives promise change, the stark reality remains: without dismantling deep-rooted systems of tokenism and control, are we simply creating new vehicles for old forms of discrimination? The true measure of progress may not lie in the policies we create, but in our willingness to confront the uncomfortable gap between paper promises and lived realities in Pakistani corporations. 

Media Recommendations 

SmartBrief on Sustainability 

Link 

SmartBrief on Sustainability is an extremely useful resource, providing short, up to date summaries of current ESG news with links to full articles. This format is ideal for quick morning updates, allowing me to delve deeper into topics of interest. However, some summaries may omit key points from the original articles. For instance, coverage of COP29 lacked details on the projected impact of a Trump win and the conference's specific targets which was highlighted in the article in mention. 

Overall, SmartBrief offers valuable brief updates, Rating: 7/10. 

Forbes article on Trumps re-election 

Link 

This article is a must read for anyone aiming to stay informed about the rapidly evolving ESG landscape. It thoroughly examines the challenges ESG initiatives may encounter under a Trump administration, particularly concerning the global objective of limiting temperature rise to 1.5°C. The piece offers a balanced perspective, acknowledging potential setbacks while maintaining an optimistic view on the extent of possible damage. However, it omits discussion of Elon Musk's anticipated advisory role in the administration and how his dynamic interests could influence carbon reduction policies in the White House. 

Overall, the article provides valuable insights into the intersection of politics and ESG considerations.

Rating: 8.5/10. 

CV VC on Blockchain being a catalyst for mitigating climate risks 

Link 

This is a weird article, and I think it is a good exercise in media awareness. The article explains why blockchain is a solution to the climate crisis, it does this by highlighting blockchains use in providing more transparent and efficient transactions and blockchain being able to facilitate the development of decentralised energy systems. These are great points but there is a severe lack of different perspectives so much so that it seems they are trying to push an agenda. There is also no mention of the environmental concerns associated with the technology such as the massive consumption of energy by certain blockchain operations. However, they do give some links to some really interesting companies within the ESG space that are using this technology.  

Overall, 5.3/10