Women leading the charge in Vietnam's green transition

Inspired by the immense potential of the energy sector to drive human and social development, Jessica Tran, Country Manager for Vietnam at Clime Capital—a green energy investment fund—quit her cushy multinational job to dive into the dynamic and challenging world of climate finance.

"Climate change is the most urgent and complex issue of our time. Vietnam, my homeland, is among the most vulnerable, which is why I am determined to contribute to the country's green transformation," she says.

However, what troubles Tran is that the representation of women in the energy sector remains alarmingly low. At Clime Capital, she works with hundreds of start-ups focused on reducing carbon emissions, but only 5 per cent of companies have a female CEO or founder, and women make up less than 30 per cent of the workforce, predominantly in supporting roles like HR, finance and administration.

"This disparity highlights the systemic challenges that hinder women's progress in the clean energy transition," she notes. Resolved to address these barriers, Clime Capital has integrated a gender perspective into the company’s strategies, focusing on women-led initiatives through skill development, market support, collaboration and together promote inclusivity, ensure diverse perspectives are represented in the clean energy sector.

With a similar vision, Michele Wee started her journey in the banking industry over 30 years ago when the field was a male-dominated fortress. Looking back, Wee wishes she had a mentor and a network of colleagues to guide her through the complexities of leadership. She did not. Yet she rose through the ranks to become the CEO of Standard Chartered Bank Vietnam in 2021.

Tran and Wee both represent a growing cohort of women empowering the climate workforce in Vietnam. Despite their different journeys, they face similar challenges that women in the sector encounter - gender bias, underrepresentation, and the stereotypes of male-dominated industries.

When it comes to gender equality, Vietnam ranks 72nd out of 146 countries in the World Economic Forum’s 2023 Global Gender Gap Report. The country’s Nationally Determined Contributions acknowledge the gendered impacts of climate change. Yet to effectively address this issue, integrating gender factors into policy and climate financing frameworks is key. This will help foster climate projects that are more responsive to gender needs.

In green industries, a World Bank report in 2023 shows that female workers only account for 22 per cent of the jobs. Also, as the global climate crisis intensifies, diverse perspectives in climate-related industries are crucial. An European Central Bank research shows a 1 per cent increase in the share of female managers can lead to a 0.5 per cent decrease in CO2 emissions.

Similarly, FP Analytics found that companies with greater board gender diversity are 60 per cent more likely to reduce the intensity of energy consumption. These numbers underscore the vital role women play in shaping a sustainable future.

In an example, under Wee’s leadership, Standard Chartered Bank Vietnam has made significant strides in gender equity. Women now comprise nearly 70 per cent of the bank’s workforce in Vietnam. The bank’s success in sustainable financing is also coherent to studies showing that lending volumes to more polluting industries are 10 per cent lower when banks have at least 37 per cent female board members.

In October 2024, Wee gracefully transitioned her role to a local female successor, ensuring the bank's continued commitment to empowering women and driving positive change.

Fueling change

Tran attributes her success to three influential women who shaped her journey, reinforcing her deep belief in the power of women empowering women.

"One of them was my predecessor at Clime Capital, who recommended me for the position and had tremendous confidence in me. That gave me the courage to take on a challenge that would allow me to make a greater impact on the community," she said.

As members of the Climate Leaders Network (CLN) launched by IFC and GEAPP with support from the Australian government and United States Agency for International Development (USAID), Tran and Wee are both working relentlessly to address women’s underrepresentation in climate action and technical fields.

“At IFC, we strongly believe that tackling climate change requires mobilizing the skills, leadership, and innovation of the entire private sector - and women's full participation is absolutely vital,” said Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia and Lao PDR.

“As long as we act for increased women’s participation and leadership in climate action, Vietnam can accelerate a climate transition that is more inclusive, just, and impactful,” he added.

In May 2024, through the Network, Standard Chartered Bank Vietnam signed an agreement to provide advisory services to the Green Solution’s Tra Vinh green hydrogen project in Vietnam, founded by Winnie Huynh, a trailblazer in the green energy sector and a CLN member.

“When a potential investor asked why I chose Standard Chartered Bank, I explained that in the energy sector, and particularly in the emerging field of green hydrogen, women often have to work harder and face more challenges than men,” said Huynh.

She needed a partner who could understand and empathize with the obstacles she encounters. That shared understanding is crucial to our collaboration.

Collaboration is indeed key. As more women in Vietnam join forces, they are ready to harness their collective strength, attracting opportunities that can drive transformative change in the climate industry.

The Climate Leaders Network (CLN), launched in June 2023, aims to increase women’s leadership, visibility, and influence in Vietnam’s green transition. CLN has 24 members who are women at C-suite or senior executive level from the private sector.