Gender Lens Investing — Creating Impact at the Intersection of Gender and Energy

Globally, 2.3 billion people live with either insufficient or complete lack of access to electricity supply.

As of 2018, the UNDP reports that across Asia-Pacific, an estimated 420 million people lack access to electricity, and almost 2.1 billion people in the region do not have access to clean cooking. ‘Unclean cooking’ generally refers to cooking methods using open-fire stoves, kerosene, and unprocessed coal, resulting in harmful air pollution and increased risk of cooking-related injuries such as burns; as well as posing long-term threats to the respiratory health of women and children.

Improving access to clean, reliable and affordable energy and improving gender equality are two major sustainable development goals, and increasingly, literature is emerging that inextricably links these two goals. Access to energy enables economic growth and development, and gender inequality is directly linked to poverty. Across Asia-Pacific, women and girls are largely responsible for domestic work such as cooking and cleaning, as well as fuel and water collection. As a result, access to clean and affordable energy overwhelmingly benefits the health and wellbeing of women and girls.

At a country level, studies suggest that there is a correlation between the proportion of the population that has access to electricity, and national levels of gender equality. Energy access is considered an ‘underexplored lever for women’s economic empowerment’.

This access allows women to improve their time management, and lessen the burden of physically-difficult work, freeing time and energy for the undertaking of study, work, or beginning small businesses. For existing entrepreneurs, energy access enables increased choice and control, with women able to experience more flexibility around opening hours, improved mobility; and for agricultural entrepreneurs, less food wastage due to adequate refrigeration.

Access to electricity is also believed to benefit girls in particular- a Brazil-based study revealed that girls in rural areas with access to electricity were 59% more likely to finish primary education by the age of 18 than those without electricity access.

In Bangladesh, more than half of the population do not have access to electricity; although energy poverty alleviation efforts have made significant progress. Bangladesh now has an estimated six million solar home systems (SHS) installed — the highest number in the world — with demand still growing.

In 2020, Frontier Brokers Network member Impact Investment Exchange (IIX) supported Bangladesh-based off-grid solar energy firm SOLShare in closing a US$1.1 million financing round. SOLShare, established in 2014, has developed the world’s first peer-to-peer solar electricity trading platform for off-grid households in Bangladesh. Their automated electricity trading model allows owners of SHS to earn additional income by selling electricity from their solar energy systems, making excess energy available to the community.

While gender lens investing is still a relatively new concept, evidence suggests that making gender smart sustainable investments could generate higher returns than investments that only take environmental sustainability into account. Using a gender lens allows us to understand that renewable energy such as SHS can strengthen women’s equality, inclusion, and economic participation. As primary electricity users, women have valuable perspectives, and the skills to actively lead and support the delivery of clean energy at a local level. SMEs such as SOLShare are championing gender equality through clean, renewable energy access with a focus on female end-users.

So, consider applying a gender lens throughout your sustainable investments for greater return and greater impact! Through investing in clean energy, you can create opportunities for women and girls to engage in education, entrepreneurship, or employment, whilst achieving better health outcomes.

More information on the Frontier Brokers Network can be found on our website: https://www.scalingfrontierinnovation.org/initiatives/brokers/

Or follow us on LinkedIn at: https://www.linkedin.com/company/frontier-brokers-network/