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To address the gender disparities that exist for women in the climate finance ecosystem and to provide female entrepreneurs with the resources they need to speed up climate change innovations, Amazon and the U.S. The Agency for International Development (USAID) has formed a public-private partnership. To support the acceleration of women's climate innovation, Amazon will provide $53 million, of which $3 million will go to the USAID partnership and $50 million will be used by Amazon to make direct investments in female-led climate tech firms.
As a new climate finance facility created to eliminate systemic market obstacles that prohibit women and girls from accessing climate financing, Amazon will be a founding partner of USAID's Climate Gender Equity Fund. To support the fund's start, USAID will match Amazon's $3 million commitment. The Climate Gender Equity Fund will have a worldwide emphasis and will offer grants to companies, non-profits, incubators, accelerators, and grassroots groups focusing on women-led climate solutions. Additionally, it will provide funding for initiatives aimed at assisting women in gaining access to the networks and technical know-how necessary to hasten the advancement of their climate change technology.
As one of the co-founders of The Climate Pledge, Amazon will collaborate with other businesses and Pledge signatories to promote corporate donations to this new fund and further support. Together, Amazon's environmental aims, The Climate Pledge's efforts, and the Biden administration's National Strategy on Gender Equity and Equality will advance the partnership's shared goals of women's leadership in the climate movement and gender equity. A further $50 million from Amazon's Climate Pledge Fund will be used to invest in women-founded and -led climate technology startups, as well as incubators and accelerators that give priority to women-led businesses. The Climate Pledge Fund, a venture capital fund operated by Amazon, will work with USAID and the Climate Gender Equity Fund to recognize new investment opportunities and expand its stream of female applicants. The Climate Pledge Fund invests in businesses that are developing cutting-edge decarbonizing technologies and solutions.
As per Kara Hurst, vice president of global sustainability at Amazon, addressing the gender disparities that still exist in climate finance is a crucial step in combating climate change. Additionally, we must make sure that female entrepreneurs have an equal voice at the table and have access to the resources, networks, and technical assistance they require to scale climate solutions. To scale up women-led climate solutions internationally, we're happy to work with USAID and the Biden administration. This is only a small portion of our larger Climate Pledge objective to achieve net zero carbon emissions by 2040, and we want other businesses to join us in this endeavor.
A small amount of venture capital is normally allocated to businesses created by women, but this proportion decreased during the epidemic. However, studies show that entrepreneurs who are women are more likely to innovate to meet social demands. Women-led businesses also increase profits per dollar invested and provide investors with better returns. Amazon has also recently committed to the United Nations Women's Empowerment Principles, which provide businesses with guidance on how to promote gender equality and empower women in the workplace, marketplace, and community. A $1 million grant was made to the Resilience Fund for Women in Global Value Chains, which invests in organizations that support women in global value chains such as manufacturing, apparel, and agriculture. In collaboration with BSR's HER project, we are combating gender discrimination in China, Bangladesh, Vietnam, and India by engaging suppliers, factory workers, and management. Almost 10,000 women have benefited from these efforts.
Investing in the Elevate Future Fund, which boosts investment for founders who are women and other underrepresented groups working on climate tech solutions, as well as businesses offering economic opportunities for struggling and underprivileged regions. This investment is a part of the new Amazon Catalytic Finance initiative, which gives capital access to underrepresented entrepreneurs. partnering with Greentown Labs, the largest incubator for climate technology in North America, to find and interact with fresh entrepreneurs. The Climate Pledge Fund takes part in pitch events, like "Access to Success," a gathering for diverse innovators. Additionally, Amazon sits on the Industry Leadership Council of Greentown Labs.
Yash Ranjan11/04/2022
