From Theory to Practice: Integrating Gender Equality and Climate Action
Sweef Capital, a women-led independent impact investment firm anchored in Southeast Asia, has launched a new report, in partnership with OnePointFive (opf.degree), highlighting best practices for integrating gender equality and climate action into impact investment strategies.
The report details the frameworks, methodologies, and outcomes of Sweef and OnePointFive’s partnership, which is aimed at addressing gender and climate issues at a systems level.
Key themes addressed in the report include:
Holistic integration: Sweef Capital’s unique approach integrates climate and gender considerations into investment decisions, fostering sustainability and resilience across various sectors.
Synergy between gender and climate: Research shows a correlation between gender-smart businesses and their performance in climate-related metrics – Sweef Capital leverages this synergy to indirectly support climate goals by promoting diversity and gender equality in its investments.
Climate framework development: In collaboration with OnePointFive, Sweef Capital has developed a robust Climate Impact Assessment Framework that aligns investments with climate-conscious practices.
Partnerships for impact: The collaboration highlights the potential for innovative sustainability approaches, transforming business models to integrate climate preparedness into corporate strategies.
Continuous improvement: Sweef Capital emphasizes the importance of regular assessments, including gender and climate-specific due diligence, to drive progress and ensure long-term impact and sustainability.
Why is this report important?
Building Capacities for Climate and Social Integration in Finance
The finance industry is in the early stages of integrating climate & social elements into investment processes and decision-making; understanding how to do this in practice is still a barrier, and highlights the skills gap in the workforce.
Aligning Finance with Climate: Best Practices from TCFD Integration
It exemplifies how to apply Task Force on Climate-Related Financial Disclosures (TCFD) recommendations in practice, particularly as they are incorporated into upcoming sustainability disclosure regulations, requiring the finance sector to execute on them and produce climate disclosures. The report is a good example of how to adapt and align TCFD recommendations, as well as other regulatory requirements, to current & future investment strategy, .
For example, given the geographical footprint of Sweef Capital’s portfolio companies and their investors, OPF helped align Sweef’s Climate Impact Assessment Framework with TCFD, the Joint Multilateral Development Banks (MDB) Assessment Framework for Paris Alignment, and the EU’s Sustainable Finance Disclosure Regulation (SFDR) recommendations & requirements for climate disclosures.
Overcoming Sustainability Challenges for LPs and GPs
The report recognizes the distinct challenges that both Limited Partners (LPs) and General Partners (GPs) face in engaging their portfolio companies to tackle and progress on sustainability topics. The approach that OnePointFive developed enables Sweef to operate within its capabilities as a GP, to screen investments, execute investment decisions, monitor, and advise portfolio companies to address sustainability & climate-related concerns.
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