Thank you to Aaron Cruikshank, Founder and President of CTRS Market Intelligence Agency; Lauren Hicks, Communications Manager at QueerTech; and Yamila Franco, Senior Marketing Director at World System Builder for their valuable insights on this topic.
Climate change knows no boundaries, but its impacts are far from equal.
Natural disasters—floods, hurricanes, wildfires, and droughts—are becoming increasingly common, disproportionately affecting marginalized communities due to their socioeconomic and geographic vulnerabilities.
Marginalized communities face heightened risks for several reasons, including:
- Geographic vulnerability: Many of the world's poorest populations live in areas highly susceptible to climate disasters, such as coastal areas, floodplains, and drought-prone regions.
- Economic reliance on natural resources: Poorer populations often depend heavily on agriculture, making them more sensitive to climate variability.
- Limited access to recovery resources: Marginalized communities frequently lack emergency services, financial support, and infrastructure to recover from climate disasters.
- Displacement: In 2022 alone, 32.6 million people were displaced by climate-related disasters, many of whom were already among the world’s poorest.
- Health impacts: Climate change disproportionately affects the health of these populations, leading to increased rates of malnutrition, waterborne diseases, and heat-related illnesses, particularly in regions with limited healthcare access.
The World Bank estimates that by 2030, an additional 68 to 135 million people could be pushed into poverty due to climate change, exacerbating existing inequalities and perpetuating a cycle of poverty. Tackling climate issues within these communities not only helps those most at risk but also offers valuable insights into sustainable practices that could benefit everyone globally.
In many ways, marginalized communities are already experiencing the realities of a climate changed world, both in terms of impacts and their ability to adapt. This helps position them to contribute significantly to shaping the future of cleantech with innovative and resilient solutions.
Climate Policy and Legislation
Historically, marginalized groups—including Indigenous peoples, low-income communities, and racialized minorities—have been underrepresented in policy-making despite facing disproportionate environmental impacts. Policymakers often emphasize technological advancements and industrial shifts without fully considering the needs of these communities, leading to solutions that overlook disparities in access to essential resources such as clean water, energy, and affordable housing. Additionally, many policies fail to recognize Indigenous rights and land stewardship, while resource-extraction projects continue to have a larger impact Indigenous lands and livelihoods.
Several Canadian projects have faced criticism for inadequate consultation with affected groups, such as:
- The Trans Mountain Pipeline Expansion: Designed to carry crude oil from Alberta to British Columbia, the pipeline has faced significant opposition from Indigenous communities, environmental groups, and local residents over environmental concerns and lack of proper consultation.
- The Muskrat Falls Hydro Project: This hydroelectric project in Labrador, has been criticized for its environmental and social impacts, including the contamination of Indigenous food sources, such as fish and seal, due to methylmercury. While there were efforts to consult these communities, many felt the process was rushed and did not sufficiently address these health risks.
- Oil and Gas Exploration in the Arctic: Exploration, particularly in the Beaufort Sea, has raised concerns about environmental degradation and the exclusion of Inuit communities in decision-making.
- Carbon Pricing: On a national level, Canada’s carbon pricing system, introduced in 2019, has drawn criticism from remote Indigenous and low-income communities. Concerns were raised about insufficient consultation and the economic burden of increased costs for essential goods like fuel, which is critical for heating and transportation in isolated areas. Similarly, low-income communities were concerned about the cost burden of carbon pricing without sufficient measures to offset the impact.
Recognizing these shortcomings, recent efforts have aimed to address these gaps. In June 2024, Canada passed Bill C-226, with the intent to ensure that environmental legislation benefits all in society and does not worsen existing inequalities. Internationally, organizations like the United Nations are advocating for policies that prioritize climate justice through initiatives like the Just Transition, which focuses on a fair and inclusive shift to a low-carbon economy.
Policy-makers have started to address this issue with programs meant to assist the most vulnerable in society. For example, BC Hydro's free portable air conditioner program helps those most impacted by heat waves, including low-income families, marginalized groups, and seniors, find relief from extreme temperatures.
Aaron Cruikshank, founder and president of CTRS Market Intelligence Agency, points out that “the biggest challenge for any government policymaker is data.” While the government has extensive datasets, privacy limitations often prevent comprehensive analyses of how climate change affects marginalized communities. However, the Social Data Linkage Environment (SDLE) at Statistics Canada enables policymakers, researchers, and non-profits to access data that can inform socioeconomic policy effectively.
Incorporating the voices of marginalized communities in decision-making fosters more equitable and effective policies, which in turn promotes innovation and strengthens social cohesion. This inclusive approach helps ensure fairer resource distribution, greater resilience, and the development of sustainable solutions to global challenges.
To substantially reduce climate impacts, policy makers will need to be more intentional in considering the unequal distribution of powers that render certain communities more vulnerable to climate change.
Dr. Ingrid Waldron “Centring Social Justice is Sound Climate Policy”, Canadian Climate Institute
Natural Disasters, Housing Inequality, and Resource Access
A 2023 World Bank study highlighted that 4.5 billion people are exposed to extreme floods, droughts, cyclones, or heatwaves. However, the effects of these natural disasters differ widely based on socioeconomic status and geographic location. The UNCAD notes that “As of 2021, 17 of the 20 most climate-vulnerable and least climate-prepared countries were LDCs, which have suffered 69% of global climate-related deaths over the last 50 years.”
In Canada, 2021 Statistics Canada report noted that 9.5% of visible minorities lived in poverty, compared to 6.5% of non-visible minorities. This is further reflected in the LGBTQ2S+ community, which faces disproportionately high rates of youth homelessness, income disparities, mental health challenges, and food insecurity. Lauren Hicks, Communications Manager at QueerTech, explains that natural disasters only worsen these problems, further straining already limited social services and making it even harder for those in need to access essential support.
In StartUp Canada’s article, “Queer Entrepreneurs Outperform, Yet Equitable Support Still Sorely Lacking in Canada”, Hicks uses a Monopoly game analogy to explain systemic inequalities, describing it as a game that has been ongoing for days, with new players from marginalized communities being asked to join. While this might appear inclusive, these new players face a severe disadvantage since most resources have already been distributed. BIPOC and LGBTQ2S+ communities, historically excluded from wealth-building opportunities, continue to face systemic discrimination. Hicks emphasizes that “real solutions cannot occur without the redistribution of resources”—a necessary step to achieve global socioeconomic change and ensure a just response to climate change.
Wealthier communities have the advantage of living in homes better equipped to withstand disasters, with access to insurance, emergency supplies, and food security. When disasters occur, they often receive government aid and have the financial means to rebuild their homes and lives. Additionally, these communities are also less dependent on local food production, which can be disrupted by natural disasters, thanks to access to imported goods.
In contrast, the poorest communities bear the heaviest burden of rising costs during disasters. Basic necessities become unaffordable, and affordable housing—often more susceptible to damage—is rarely rebuilt, leaving vulnerable populations without a safe place to live. As temperatures rise, these challenges will worsen, with underprivileged households struggling to afford electricity bills or access air conditioning during extreme heat.
In countless ways, society’s most vulnerable will bear the brunt of climate change’s impact, widening the divide between those who are better equipped to withstand its consequences and those who are not.
Cruikshank explains that climate change is a catalyst for exposing societal issues and exacerbating existing inequalities “because the mitigation strategies for climate change all require money.” He points out that the increasing frequency of climate-related disasters not only raises the costs of mitigation but also makes it harder for the poorest to sustain their livelihoods.
Interestingly, many of the world’s poorest populations—out of necessity— already practice sustainable lifestyles with minimal carbon footprints.
Their resourceful approaches to daily living highlight valuable lessons in sustainability that wealthier nations could learn from. These communities, with their inherent resilience and sustainable practices, have a lot to teach the more economically privileged about shaping a greener global future.
Resourceful Living in a Climate Crisis
The UNCAD noted in their 2023 report on least developed countries (LDCs) that these nations only account for 4% of all global GHG emissions. Less financially privileged communities often have a lower carbon footprint because they consume less resources, including energy, water, and materials. They tend to live in smaller homes, rely on public transportation, and use fewer disposable goods. Limited access to imported goods also encourages reliance on locally sourced food, which reduces the environmental impact of transportation and large-scale agriculture—both major contributors to emissions.
In many Indigenous and rural communities, traditional knowledge around foraging, fishing, and hunting promotes sustainable resource use without overexploitation. These communities also practice shared resource management, such as community water systems and collective farming, leading to more efficient use of limited resources and stronger community resilience.
The concept of a circular economy, where goods are reused, repaired, and recycled rather than discarded, is a practical reality for many marginalized communities. Clothing, electronics, and household items are often passed down, repaired, or repurposed to extend their lifecycle.
Despite the sustainability of these practices, marginalized communities frequently lack access to modern technology, infrastructure, and political representation that could strengthen their resilience to environmental challenges. Yet their capacity to navigate socio-economic hardships, adapt to adversity, and understand the needs of the most vulnerable positions them as key leaders in the fight against climate change. As the crisis deepens, it’s essential to provide marginalized communities with the support and resources needed not only to endure but also to contribute their valuable insights to global solutions.
Workforce Diversity and Innovation
We have established that climate change disproportionately affects marginalized communities, but what does this mean for cleantech and innovation?
Cruikshank explains that “equity-seeking groups are over-represented in self employment and small business ownership because it is a lower barrier path to making an income for people who do not fit into the corporate world.” Basically, it’s often more difficult for those from marginalized communities to find employment in larger organizations. “Large corporations can do their part by buying from these small businesses and supporting them whenever possible,” Cruikshank poses.
A 2021 study conducted by Deloitte found that 70% of LGBTQ2S+ respondents had never encountered specialized funding programs for their businesses. Similarly, StartOut’s 2023 report revealed that only 0.5% of the $2.1T in startup funding in the US was raised by LGBTQ2S+ founders, despite them comprising 7.1% of the population.
Yet these founders created 36% more jobs, secured 114% more patents, and had 44% more exits than the average founder, even with 16% less funding.
This underscores the challenge for marginalized entrepreneurs to access the capital needed to scale their businesses despite their proven impact.
Afro-Indigenous founder and entrepreneur Yamila Franco explains that diversity is vital for promoting both equity and innovation by incorporating different viewpoints, experiences, and skills that enhance decision-making and strengthen problem-solving processes. Diversity promotes:
- Inclusive representation
- Challenging biases
- Equal access to opportunities and for innovations
- Cross-pollination of ideas
- Adaptability
- Social cohesion and strong community bonds
A 2020 McKinsey study of 1,000 companies across 15 countries found that “the most diverse companies are now more likely than ever to outperform less diverse peers on profitability.” The World Economic Forum echoed this, noting that “companies leading their geography and industry for diversity, equity, inclusion and belonging perform better than their market average across a wide range of key performance metrics.” They say that when it comes to innovation, diverse teams achieve up to 20% higher rates of innovation and generate 19% higher innovation revenues. Of the ventures that applied to be included on the 2024 Foresight 50 list of Canada's most investible cleantech ventures, 107 of those in C-suite positions identified themselves as BIPOC and/or immigrants.
Individuals who have faced hardship bring resilience and fresh perspectives, offering unique solutions to complex challenges like climate change.
Diversity not only enriches society by giving people access to broader perspectives and opportunities, but it also stimulates the creative processes necessary for societal progress. When inclusion and innovation go hand in hand, the result is a more dynamic, just, and forward-thinking society. When we focus this on social impact and social entrepreneurship it opens the door to advance climate action, to move towards a carbon neutral economy or to create new jobs.
Yamila Franco Senior Marketing Director at World System Builder
Sustainability Needs Resilience
To effectively combat climate change, the world needs resilience. Cleantech requires innovators who are determined to overcome obstacles, business leaders who have faced adversity and continue to find solutions, and individuals who inspire real change. The road ahead is long, but there are people who already know how to navigate hardship and lead through it.
Marginalized individuals are disproportionately affected by climate change, but their firsthand experiences and resilience uniquely position them to drive equitable environmental policies and lead transformative businesses. Having practiced sustainability out of necessity, they bring valuable insights into our collective future and can identify gaps in climate solutions, emphasizing the importance of collaboration for a just transition.
These individuals are not just survivors of hardship—they are visionaries who can lead us toward a prosperous, sustainable future. They understand the interconnectedness of socioeconomic challenges and environmental issues, knowing that addressing one requires addressing both.
Climate change demands resilience, and marginalized communities embody that resilience in the truest sense.
