Whether it’s a protest, a rally or an activism campaign, women’s rights are making headlines — and investors are taking note. Now, many are incorporating gender lens investing into their investment strategy.
Gender lens investing is an investment thesis that aims to transform the idea of an investment’s benefit to women into a practical, successful strategy. It integrates gender-based research and data into investment decisions with the goal of increasing financial return and driving gender equality.
This may look like investing in women-owned or led enterprises or ones that offer women’s products or investing in enterprises that promote workplace equality. Gender lens investment strategies may also include different approaches like creating vision or missions to address gender issues, a more inclusive workplace or gender-equitable management of performance.
Why invest in women?
Roughly one-third of investors explicitly target gender inequality as an impact theme and, on a global scale, private equity funds who use gender lens investing are deploying about $1.3 billion in capital.
Not to mention, companies who use this approach also benefit from better decision-making by a more diverse group of directors that include a larger representation of women.
Obviously, gender lens investing is working — yielding a high financial return for those who incorporate it into their investment strategies. And more investors are moving to adopt this profitable strategy.
But this approach is benefiting more than just the companies that utilize it. Through gender lens investing, more jobs are being created for women, their opinions are valued, and they receive better feminine products and care.
This, ultimately, is what fuels gender equality. It lays the foundation for women to have a louder voice in politics, business and the economy while supporting all human rights.
Sure, focusing on women helps women, but it also helps the global community. In fact, if women are employed at the same rate, in the same roles, with the same pay as men, the global economy could be between $12 trillion and $28 trillion larger by 2025.
This incredible increase could be due in part to the fact that, when women have financial control, they tend to put their money back into their community through local charities and child-rearing.
The future of gender lens investing
Moving forward, the quality and quantity of gender-related data will continue to expand, giving investors a new lens with which to view gender-related, in relation to making investment, decisions. And, if governments and societies retain focus on gender equality and women’s rights, gender lens investment initiatives will continue to proliferate.
Investors, stakeholders and social leaders have the power to hasten this process if they choose to take bold action. And, those that act now will surely reap the benefits. Because investing in women is good for fiduciary return, diversification, economic growth and every human — children, adults and people of all genders.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
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