empowering women to empower the earth

What is success in a connected world?

Empowering women to empower the earth

PricewaterhouseCoopers 1

Contents

Introduction 2

The choice pathway 9

The stewardship pathway 13

The economic development pathway 16

The human and capital resources pathway 20

The path ahead 23

Bibliography 26

Acknowledgements 29

Introduction


Addressing climate change and other assaults on the environment has become the global mantra of the new millennium. Governments, businesses and private citizens worldwide are marshalling substantial resources and ingenuity to tackle these problems. Encouraging anecdotal signs can be seen in the demand for alternative fuel cars globally, energy conservation measures in China, the dramatic rise in clean-energy technology investments worldwide, and the prospect that a new US administration will rejoin international efforts to stem greenhouse gas emissions.

But, if these accelerating efforts to avert the global climate change crisis and to otherwise ensure that life on the planet remains sustainable are to succeed, they must be vastly expanded. The challenge demands action by many constituencies on innumerable fronts.

Developed countries must be at the forefront of these efforts. The United States, the European Union and Japan created 57% of cumulative energy-related carbon emissions from 1900-20051, so those nations must bear the brunt of climate change mitigation efforts. On this responsibility, most global leaders agree: 74% of CEOs around the world either agree or strongly agree that “Developed countries should accept more responsibility and costs than developing economies for mitigating climate change”2. Public and private sectors in developed countries have stepped up their efforts in recent years to develop new technologies, regulate emissions, finance infrastructure and encourage resource conservation – but these efforts must accelerate dramatically if they are to have any impact.

Since women make up half the world, their role in achieving sustainability objectives cannot be over-emphasised.

1 International Energy Agency, World Energy Outlook 2007, 2007.

2 PricewaterhouseCoopers, “Compete & Collaborate: What is success in connected world?”, 11th annual Global CEO Survey, 2008.

4 Empowering women to empower the earth

Introduction

At the same time, many experts believe developing countries, which represent the bulk of forecast increases in demand for resources in coming years (see Exhibit 1), must complement the efforts of developed countries. Developing countries represent a more diverse mix of economic, social, political and cultural conditions, so the avenues through which each country might address its own carbon footprint and resource consumption, be it new infrastructures or entering in global emissions frameworks, may also differ.

If we fail to exploit every possible inter-connected opportunity, we may miss our chance to achieve sustainability – the use of resources so as to meet human needs in the present while preserving the environment so that those needs can also be met into the indefinite future. Indeed, by some estimates, current trajectories for population and economic growth and resource use indicate that an extra planet will be required to sustain the human population by 2050.

In that time, the human population is expected to grow from about 6.7 billion currently to 9.2 billion, according to United Nations estimates. Meanwhile, energy consumption is projected to increase by 140% between 2006 and 2050, and CO2 emissions will more than double from 7.5 gigatonnes to 19 gigatonnes3. Glaciers and ice caps are already melting faster than anticipated, the frequency and intensity of hurricanes and other extreme weather conditions are devastating communities worldwide, plant and animal species are disappearing and becoming extinct at an unprecedented pace, and deforestation continues at an alarming rate.

Neither governments, NGOs, private businesses nor civil society can succeed alone – sustainability is an issue which embodies the concept of the connected world. Sustainability efforts involve coordinated

3 PricewaterhouseCoopers, “The World in 2050: Can Rapid Global Growth be Reconciled with Moving to a Low Carbon Economy?”, 2008.

Neither governments, NGOs, private businesses nor civil society can succeed alone – sustainability is an issue which embodies the concept of the connected world.


responses by many entities. Accords on CO2 emissions, for example, will require international organisations and national governments to come to consensus, and industries to adapt to new regulations and emissions schema. Energy-efficient transportation grids will require governments and utilities to rebuild infrastructure and power plants, and households will have to adjust their purchasing habits.

Exhibit 1: The developing world’s share of world carbon emissions is rising

0%1990 2005 2030

25%

50%

75%

100%

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rela

ted

CO

2 em

issi

ons,

ref

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ario

(% o

f wor

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Rest of worldIndiaJapan ChinaEUUS

Source: International Energy Association, World Energy Outlook 2007


Introduction

Since women make up half the world, their role in achieving sustainability objectives cannot be over-emphasised. We would further argue that empowering women is necessary to empower the earth.

This paper explores the interconnectedness between gender equality and sustainability along four possible pathways. Many women are stuck in a vicious web of poverty, high fertility, poor health, environmental degradation and lack of opportunities. Women must be empowered as ambassadors of natural resources and the environment and as contributors to socio-economic progress if the earth is to be sustainably developed.


Pathways to progress

The four pathways through which female empowerment and sustainability are explored include:

• Choice: There is a strong correlation between women’s educational achievement and total fertility rates. So, to the degree that rapid population growth contributes to environmental stresses, could female empowerment, particularly through education, mitigate the growth of a country’s ecological footprint?

• Stewardship: Evidence suggests that, because of their primary responsibility of providing for their families, women are more careful stewards of natural resources and the environment. Could empowered women have a greater influence on stewardship practices within their families, their communities and in wider spheres?

• Economic development: Although the relationship between economic development and ecological impact is highly complex, it is fairly clear that as nations grow wealthier, their environmental impacts also grow. While female empowerment might speed economic activity and thereby enlarge ecological footprints, could better informed economic choices made by women also mitigate the impact of that growth on the environment at discrete stages of development?

• Human and capital resources: While higher incomes alone might reduce unsustainable land use by the rural poor, could female empowerment in terms of human and capital resources also improve land stewardship and other sustainable practices?


Each pathway represents a complex mix of social, cultural, political and economic relationships. We are not suggesting that giving more education and business opportunities, or access to credit and political freedom, to more women will magically transform a nation’s ecological footprint.

We have instead set out to examine the breadth of existing literature on the relationships between gender empowerment and resource consumption, particularly in developing countries, in order to understand the potential behind different veins of research. While there is evidence that each pathway could provide steps towards a sustainable future, none represent either a certainty or a panacea in any given country. In many cases, we have summarised findings in a manner meant to stoke further inquiry. More research might be needed to better understand the levers within each pathway that can maximise the impact of female empowerment on sustainability, and realise progress on social, political and economic fronts.

By gaining a broad understanding of the complex crosscurrents, stakeholders can gain an appreciation for how promoting these pathways can enhance sustainability at all levels. And, they can begin to explore how best they can contribute to facilitating progress along these pathways.

I do think it’s possible that some countries in the developing world will actually leapfrog countries in the developed world in terms of the speed with which they close the gender gap. Alison Maitland, Journalist; co-author of “Why Women Mean Business”

Introduction

The choice pathway


One of the obvious pathways through which empowering women could have an impact on sustainability is through a reduction in fertility rates that would lessen demands on the environment from population growth.

Ever since Thomas Malthus wrote “An Essay on the Principle of Population” in 1798, generations of social scientists have raised alarms that population growth will eventually exceed the availability of natural resources to sustain the population. One theory posits that, even if per-capita consumption of resources, whether food, energy

or water, remains constant, an exponentially growing population will one day exceed the planet’s carrying capacity. And the faster the population grows, the sooner that day might come.

Malthus struck a nerve; debates over population control have inflamed cultural, political and social passions ever since. Yet, there may be avenues in which population growth moderates as a natural consequence of progress towards the United Nations’ Millennium Development Goals. Exhibit 2 hints at one possibility: In nations in which women have more educational, political and employment opportunities, they tend to have fewer children in their adult lives – by their own choice.

The most important plea I would make to the private sector to close the gender gap is that they have got to invest in education, in their own company, and in general in society. They shouldn’t only train for what they need, they should train for what future generations of society, clients, and the markets they service need… They need to do extraordinary things to invest in training in the workplace, by mentoring and increasing the productivity of the people they already have, but also making sure that there is a pipeline of people in society that they can choose from.Ms. Phumzile Mlambo-Ngcuka Former Deputy President of South Africa

The choice pathway


Exhibit 2: Women in countries with more gender equality tend to choose to bear fewer children

Fert

ility

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e (c

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Global Gender Gap Index, 2007

Rest of world India China Japan EU US

Less equality Greater equality

7

6

5

4

3

2

1

00.45 0.55 0.65 0.75 0.85

Note: Size of bubble is proportional to size of each country’s population.

Source: World Economic Forum; United Nations

Several elements of empowerment – access to income, credit, clear land title, education and decision-making authority – are believed to lead to women’s decisions to have fewer children. The most powerful of these appears to be education. According to the World Bank’s report on fertility regulation in Africa, Eastern Europe and Central Asia, there is a strong negative correlation between total fertility rates and women’s education4. With more education, women are likely to feel that they have more options and choose to work rather than stay home with children. It also might enable them to make more informed decisions about the trade-offs of childbearing on personal, familial and societal levels.

Education, too, has been found to raise the age of marriage, which can result in fewer children. One question warranting further examination is how much education (whether literacy, primary, secondary or some other marker) is necessary to have an impact on fertility, a factor that varies by culture. By one estimate, for every two to three years of education, a woman is likely to have one less child5.

4 Lule, E., et. al., “Fertility Regulation Behaviors and Their Costs”, 2008.

5 Goldman Sachs, “Women Hold Up Half the Sky”, 2008.


6 Sherbinin, A.d. et al., “Population and Environment”, 2007.

We recognise how sensitive this viewpoint might be perceived. Since the highest population growth is expected to be in developing countries, limiting population in the interests of sustainability can be seen as an assault on the poor. For those who view economic injustice as the cause of environmental degradation in developing countries, this is a particularly charged linkage. And, a single-minded focus on population growth may have unintended consequences; consider that fertility rates have dropped well below the replacement rate in many countries, bringing a whole new set of attendant problems related to pensions and health care for ageing populations. In addition, regulatory measures aimed at limiting population growth can be controversial for a number of other social, political and religious reasons.

To be clear, our point is not to imply that there is an optimal rate of population growth, but rather to suggest that women who are given more decision-making power and opportunities outside the home might, at the margins, decide to have fewer children. This could have a positive effect on sustainability in the long run.

At the same time, we acknowledge the debate about the link between population and environmental impacts. Some believe that increased population will induce innovation and productivity gains adequate to sustain the population6. Others suggest that factors – including technology, culture, institutions and global markets – mediate the link between population and environmental degradation. And, of course, the decision to have children is dependent on far more factors than empowerment, including family, religion, culture, income, health and a host of other personal influences.

The choice pathway

The stewardship pathway


Some women engaged in subsistence farming in developing countries have been found to be the repositories and preservers of local and traditional knowledge and practices, many of which are models of sustainability. Empowering these women – through greater decision-making power, access to land tenure and credit – could enable them to replicate these practices on a larger scale and serve as exemplars for further development.

In many developing countries, women have the primary responsibility for the growing, collecting, processing and storage of food. They are said to be the main producers of the developing world’s staple crops7. They are also responsible for the use and management of other natural resources such as water, fuel, fodder,

medicinal products and fibre for family use. In many societies, women have assumed responsibility for harvesting a variety of non-timber forest products. As a result of these responsibilities, women are often especially mindful of scarcity, the safety of these resources and, in many instances, know how best to preserve them. Women’s overriding interest in child health and nutrition, for example, is thought to explain why water quality was the prime concern of women in a study of several Indian communities8.

In their roles as primary producers of food for subsistence, many women in developing countries adhere to traditional cropping methods, fallowing, crop rotation, intercropping, mulching and other practices that protect the soil and its fertility. They are also often critical in the preservation of species through their retention

What’s really important for organisations to realise… is that women are also customers and clients, and that is something that is going to hit the bottom line and impact profitability quite significantly. I’ve done a lot of research around marketing to women and I think that women buy differently to men; they’re much more concerned about the values of an organisation than value.Maureen Frank Managing Director, Emberin PTY LTD

7 Aguilar, L., “Gender Perspectives on Climate Change”, 2008.

8 Duflo, E., “Gender Equality and Development”, 2005.

The stewardship pathway


and passing on of seeds. Women’s roles in the cultivation of potato varieties in some Andean cultures are illustrative. In certain Andean societies, women are obligated to pass on numerous potato tuber varieties to their daughters. Many also pass on traditions of how to preserve and cultivate seeds from potatoes rather than propagating tubers, a practice that leads to a reduction of varieties. In these communities, as well as in many other cultures worldwide, men are more likely to take on the responsibilities of producing commercial crops, and are thus inclined to overlook the value of a great variety of species in favour of one or a few that are most in demand in the marketplace. However, the Andean women, through tradition, have learned the value of variety – for a diversity of maturation times, resistance to frost and pests, soil condition preferences, taste, nutritional value and other qualities9. As a result, these women play a critical role in the protection of biodiversity.

The stewardship pathway relating empowerment to sustainability is also scalable. Nobel Peace Prize Laureate Wangari Maathi and her founding of the Greenbelt Movement provides a particularly dramatic example of how empowering women to act on their appreciation for the value of natural resources can have an enormous impact on sustainability. Through the movement, Maathi organised hundreds of thousands of African women to stand up for their rights and plant millions of trees, reversing deforestation in their countries and setting a course towards healthier and more productive lives.

9 Banning, S. E. and Hill, C. L., “Farmers Rights in the Conservation and Use of Plant Genetic Resources: a Gender Perspective”, 1996.

From working with WWF, I see that women play a critical role as stewards of the environment. They are more reliant than men on natural resources and are often responsible for using them wisely. However, they are often not involved in the decision-making processes by which these resources are governed.

It is also women who feel more strongly the impacts of environmental degradation and climate change. For example, degradation of forest resources means that women have to walk further to collect fuel wood; at the same time increasing water scarcity means that many women have to spend more time collecting water. We need to make sure that women’s views are heard when it comes to the management of their natural resources. Ed Smith Chair of WWF-UK

The economic development pathway


Although GDP growth is correlated with larger environmental footprints, within distinct stages of economic development, gender equality can lead to improvements in environmental practices. So, while female empowerment might speed economic activity, there is also some evidence that it could also mitigate the impact of that growth on the environment.

Consider, for example, the energy intensity of economies – the energy consumed per unit of GDP. The world’s energy intensity declined from 1995-2005, in constant dollar terms. Which nations led the way? Outside the developed world, nations posting greater declines in energy intensity tended to be those with higher levels of gender equality (see exhibit 3). While there are many factors at play, this at least suggests that the more women contribute to business and political realms, the more likely nations will increase the efficiency of their energy resources, which is one key element of sustainability.

Exhibit 3: Female empowerment correlates with reductions in energy intensity in middle- and low-income countries

-5,000

-2,500

2,500

-7,500

5,000

-10,000Cha

nge

in E

nerg

y In

tens

ity,

1995

-200

5 (B

TU/2

000

US

$)

Global Gender Gap Index, 2007Less equality Greater equality

0.55 0.750.65

Note: High income countries excluded. All nations with available data are factored into trendlines, but not all are depicted.

Source: World Economic Forum; World Bank (for classification); US Energy Information Administration; PricewaterhouseCoopers analysis.


It is not clear whether and how more female empowerment led to reductions in energy intensity. Yet, there is anecdotal evidence that female empowerment does lead to increased efficiency of environmental resources through sustainable practices in developing countries.

For one thing, poverty is related to environmental degradation in the developing world because of the poor’s need to eke out existences on marginal land. Because of their limited access to prime agricultural land, the poor are prone to overuse and exhaust what they have, to overgraze and to expand into forested areas. Their lack of resources

suppresses productivity and aggravates the problem. For example, without enough land to sustain themselves, the poor are not likely to leave any fields fallow so that soil is never given periodic rests that are critical for the restoration of its nutrients. Since women in the developing world tend to be at the bottom of the income scale, their access to resources – which includes education, land, capital and inclusion in development programmes – has a large impact on both agricultural productivity and sustainability.

But the economic development pathway defies easy generalisation. As households become richer, their energy consumption will tend to increase as a matter of course. In addition, while improved incomes can lead to more sustainable practices at certain levels of development, it clearly has the opposite effect at other stages. Broadly speaking, as societies shift from agricultural and extractive economies to industrial economies, their resource consumption tends to grow rapidly. Then, as services begin to overtake manufacturing in their share of the economy, the link between resource consumption and economic growth begins to level off. (Then again, many economic activities with a high environmental impact – for example, manufacturing plants and strip mines – are simply transferred to countries in earlier stages of development.)

Companies and nations which don’t close the gender gap are running the risk, in the end, of not being competitive in the South African economy and also in the global economy, because, among other reasons, they are losing the opportunity to tap into other ideas from people who had previously been left out of their workforces. So it is something you cannot afford to do if you hope to succeed. Thalid Jali, Executive Chairman, PricewaterhouseCoopers South Africa

The economic development pathway


What’s being suggested is not that female empowerment will change the dynamics of consumption and growth, as they are currently understood. However, it’s possible that female empowerment could lead to a more resource-efficient transition along the path of economic development.

The human and capital resources pathway


Several research efforts emphasise that women are both dominant in the production of staple crops in the developing world and play pivotal roles as managers of their households. In those capacities, the potential environmental impact of female empowerment is amplified when women gain more access to education and securer land titles, as well as opportunities to command higher incomes.

Property rights regimes in some parts of Africa provide clear examples of how women’s empowerment in this regard could enhance sustainability. In parts of Africa, women and men retain separate property rights. However, more resources, such as fertiliser, tend to be dedicated to the land controlled by men, even within a single household. Women are reticent to form operating partnerships with the men who hold resources, for fear that it will undermine their claims on the property, because their property rights tend to be weaker than men’s. So, with less productive land, they are driven to less sustainable practices. In Ghana, a related phenomenon occurs. Land rights overall are weak there and the most powerful individuals in communities can often make their land title claims honoured over less powerful individuals. As a result, the least powerful, women, are least apt to let their land fallow periodically for fear that the more powerful will appropriate it for their own use and they will lose claim to it10.

In urban areas of developing countries, links have been found between increased household income, education and the adoption of more sustainable practices.

Women are now driving market decisions. Eight out of ten consumer spending decisions in the US are made by women. And we’re not just talking about the traditional things that you associate with female purchasing power, but we’re talking about everything from computers to financial services products and, indeed, to cars. Even in Japan, where women are much less empowered in the workplace, women are responsible for either influencing or deciding two-thirds of car purchases. So these are really, really important and significant changes in the marketplace.Alison MaitlandJournalist; co-author of “Why Women Mean Business”

10 Duflo, 2005.


11 Farsi, M., et. al., “Fuel Choices in Urban Indian Households”, 2007.

In a study of urban households in India, it was found that lower income households tended to use dirtier burning-fuels such as wood and kerosene because they are less expensive and require minimal upfront investment. However, as incomes rose, households were more apt to use cleaner burning fuels such as LPG, which are more expensive and require preliminary investment in connections, equipment and stoves. Educating women about alternative methods of cooking, heating and disposing of waste also had significant impact on the use of cleaner burning fuels. The study concluded that higher incomes and better education meant that households were more aware of the health hazards of using firewood and the efficiency and convenience benefits of using LPG and other cleaner burning fuels11.

The human and capital resources pathway

The path ahead


The path ahead

Where do these pathways lead? Are these pathways the right ones? And is there a role for the private sector? To begin with, women’s empowerment to promote sustainability is not simply an altruistic pursuit that requires philanthropic responses. It is a goal in itself for a variety of reasons and only one of numerous strategies that could be employed for the goal of sustainability to be achieved. And, sustainability itself, it warrants repeating, is not a quixotic dream. If rapid progress is not made towards its realisation, businesses and other stakeholders will increasingly feel the impact directly and painfully. Without adequate energy and other natural resources, heightening competition could not only lead to ever more onerous monetary costs but also to geopolitical and civil strife.

Clearly, empowering women so that sustainability is enhanced is not the responsibility of the private sector alone. But the private sector must decide how best it can further these ends and facilitate the contributions of other stakeholders, including governments, non-governmental organisations and civil society.

In fact, this is not a new agenda for the private sector. So, taking action to explore and promote these pathways should not be seen as another burden on an already overcrowded corporate to-do list. As the private sector has long known, women’s empowerment is crucial to ensuring there is a dependable and bountiful supply of the best talent possible13.

We looked at teams that were just men, and teams that were just women, and teams that were 50% women and 50% men. And the question we asked was which are more innovative? We found actually the 50% mix was the most innovative and the all-male teams were the least innovative. So there’s a huge set of very strong reasons to allow and enable women in your organisation to get to the top.Professor Lynda Gratton, London Business School

13 PricewaterhouseCoopers, “Emerging markets: the gender agenda”, 2007.


Many nations, particularly fast-growing ones, are experiencing shortages of labour. Women in these nations represent a great potential source of additional talent. Whether because of access to education, cultural norms, or access to credit, women continue to be excluded from participation in the business community at precisely a time when they are most needed. The sustainability perspective is one more reason for corporate leaders to increase the opportunities for women, whether through internal programmes aimed at increasing employment, retaining women, and developing female leaders, or through external engagement with policymakers and communities around improving gender equity to benefit the private sector and society as a whole.

The World Bank is delighted to see the private sector increasingly engaged and committed to this critical agenda. Climate change presents an opportunity for a more open dialogue and greater understanding between the powerless and those in power. We need to do much more to ensure that the social dimensions of climate change and women’s empowerment are integrated into the global and national policy debates and frameworks to achieve greater equitable development and social justice for the vulnerable. Caroline Kende-Robb Acting Director, Social Development Department, World Bank.


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AcknowledgementsEditorial group:

Linda Corman Writer

William Day Sustainability Advisor, Sustainability and Climate Change, PricewaterhouseCoopers

Sophie Lambin Director of Global Thought Leadership, PricewaterhouseCoopers

Larry Yu Thought Leadership Fellow, PricewaterhouseCoopers

Advisory group:

Bharti Gupta Ramola Sustainability Leader, India, PricewaterhouseCoopers

Moira Elms Global Partner for People & Culture, Brand & Communications, PricewaterhouseCoopers

Yael Selfin Head of UK Macro Consulting, PricewaterhouseCoopers

Cleo Thompson Programme Office Leader of Global Gender Advisory Council, PricewaterhouseCoopers

Thierry Raes Sustainability Leader, France PricewaterhouseCoopers

Most quotations are provided courtesy of the participants in PwC’s video, “Closing the Gender Gap: Challenges, Opportunities and the Future.” Please visit www.pwc.com/women for further details.

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ContactSophie Lambin Director of Global Thought Leadership, PricewaterhouseCoopers Phone: +44 20 7213 3160 Email: [email protected]

pwc.comPricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 154,000 people in 153 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

‘PricewaterhouseCoopers’ refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

Designed by studioec4, October 2008