What is Gender Lens Investing?
Gender lens investors use their investment dollars to promote gender equality and improve the lives of women and girls.
Selecting investments through a gender lens means analyzing opportunities based on the potential to create positive impacts for women in addition to the potential for improved risk adjusted returns. Gender-based factors and financial performance data are weighed in the investment decision-making process. It is a form of impact investing in which investors use their capital to create positive social change that aligns with their values.
Impact investors may use a gender lens to analyze opportunities across asset classes, choose individual securities for investment, or assemble entire portfolios. Gender lens investing strategies vary depending on the financial and impact goals of the investor.
The Future of Gender Lens Investing
Women’s rights are human rights. Increasingly, people are concluding that we must address gender disparities and gender equity is necessary if we are to achieve social, political, and economic stability and growth globally. Gender Equality is number five on the United Nations’ list of Sustainable Development Goals (SDGs). In describing this goal, the United Nations says that achieving gender equality is seen as “a necessary foundation for a peaceful, prosperous, and sustainable world.”
The future of gender lens investing will be shaped by the vast numbers of new investors that are joining the movement. Along with a rise of interest in Sustainable, Responsible, and Impact investing (SRI), more and more investors are seeking out gender lens investment products by name or looking to address gender disparities through strategic investments in companies that are led by women or are innovating new solutions that will improve the lives of women and girls in communities across the world.