Making the case to the IC and closing
To close a gender-smart climate finance deal, investors must be equipped to present the case to the investment committee (IC) and or Board in a way that showcases the impact and business value opportunities and the risk mitigation potential.
The difference with presenting a gender-smart climate finance investment is to explain clearly how combining both lenses will strengthen the business and impact case, compared to a focus on just one lens alone or a deal that does not have either focus. The deal team should have built its knowledge and capacity in gender and climate investing by this stage, but should still be prepared to clearly articulate the high-level business and impact cases. This can draw on the cases and examples laid out in the Why invest in gender-smart climate finance section of the Toolkit, highlighting benefits such as improved operational efficiency, innovation, reputation, alongside enhanced community and ecological health, for example. There are also some compelling data points on the 2X Gender and Climate Finance community of practice page.
Gathering and summarising information from the previous steps in the investment process can help deal teams to make a compelling case. The deal teams should demonstrate how both the business and impact case are aligned with your organisation’s own strategic goals . You can also refer to case studies and “success stories” of comparable investments; for example in the same sector or geography, or with similar gender/climate criteria. These can be sourced from the case studies collection.
Introduction
It is important for Investment Committee (IC) /Board members to understand the roles and implications of gender in climate finance investments, so that they can better assess investment opportunities presented to them, and identify potential risks that have not been flagged. This IC Tip Sheet includes guidance to help IC/Board members ask the right questions about gender from a commercial and impact angle.
The membership of the IC/Board can also influence understanding and decision-making around gender. A more diverse, gender-balanced IC/Board can result in more inclusive considerations. Steps to increasing diversity can be found in the section on Strengthening Gender Diversity at the Firm/Fund Level in Private Equity and Value Creation: A Fund Manager’s Guide to Gender-smart Investing.
Growing gender and climate awareness at IC/Board level
Are you familiar with, and able to clearly articulate, both the business and impact cases for investing with a combined gender and climate lens?
Have you gathered and summarised information and data from the previous steps in the investment process to make a compelling case? Including climate and gender-smart finance eligibility criteria; key climate and gender activities and impact/performance metrics negotiated; and expectations for both financial performance and gender and climate impact.
Can you explain how the climate and gender focused components of the investment support your institution’s strategic goals?
Have you identified case study examples or success stories with comparable climate and gender smart characteristics you can refer to?
Questions to consider