The roadmap serves as a guide to aid investors in achieving greater gender equity, racial equity, diversity and inclusion (EDI) in their investments. Among the significant challenges identified in the roadmap is a lack of understanding of intersectionality and other elements of diversity and inclusion. There is a shortage of data and metrics that would enable better assessment of diversity performance by corporations and there is a lack of female talent. The report highlights that investors who are focused on achieving gender equity could overlook other factors like racial equity.

Part one: What is gender lens investing and why should you care?

This section focuses on what gender lens investing entails and the business case supporting the incorporation of gender equity in investments. The report summarises several best practices from investors who have successfully integrated gender lens investing in their investment strategies. It also emphasises that Gender Lens Investing can be a gateway towards incorporating broader aspects of diversity and inclusion.

Part two: Current landscape, best practice and pathways for change

Part two summarises current initiatives in place and best practices in gender lens investing. It also highlights platforms that aid investors in adopting impact investing strategies and weighing them against their investment objectives. The report discusses the significant role the Australian market can play in driving gender equity and inclusion, considering that the country has a high percentage of women on company boards compared to other countries that are leading in gender equity. However, the roadmap notes that more still needs to be done to achieve true gender equity.

Part three: Roadmaps to gender lens investing

Part three presents a detailed roadmap based on the investor’s type to help them make better investment decisions that incorporate gender equity factors across multiple asset classes. The roadmaps provide specific recommendations, including hiring a head of impact/ environmental, social and governance (ESG) to embed all impact-related issues, including diversity, into the investment process formally in making direct and indirect investments.

Asset owners and family offices should build diversity skills and expertise across the investment team through training and recruitment, while fund managers should create a gender fund that invests explicitly in business models aimed at improving gender equity. The report identifies key policies that can inform changes needed to enable gender lens investing in Australia.

Gender lens investing by asset class

There are different ways that investors across asset classes can adopt a gender lens approach to investment. For example, asset owners can leverage their position as influential shareholders, fund managers can integrate gender considerations into their investment analysis and decision-making processes, and wealth managers can develop gender-focused portfolio development and products. Family offices and foundations, in particular, can exert influence in other areas of gender support beyond just grant-making or investing the foundation’s corpus. Finally, structures and systems can be put in place, such as compensation strategies that promote gender equity and diversity, to ensure gender lens investing is an integrated practice across an entire organisation.

Conclusion

Investing through a gender lens is a gateway investors can use towards addressing bigger concerns such as achieving wider equity and inclusion in investments. The report highlights several best practices and initiatives that investors can adopt and drive a change in the investment landscape towards greater equity and inclusion.

Overall, the report stresses the importance of diversity metrics, which can help investors identify the best pathways to achieving gender equity and inclusion in their investments, and the significance of collaboration between investors and gender experts to foster positive results.