Introduction

This report provides guidance for banks seeking to advance gender equality and women’s empowerment across their operations, portfolios and wider ecosystems. It targets signatories to the Principles for Responsible Banking (PRB) and the Women’s Empowerment Principles (WEPs), but is applicable to all banks aiming to integrate gender considerations into sustainable and responsible finance. Gender inequality persists despite progress, with women holding over half of banking jobs globally but only 23% of executive roles, and facing an estimated USD 1.5 trillion global credit gap as entrepreneurs. Aligning finance with gender equality is framed as both a human rights imperative and a strategic business opportunity.

Part 1: The role of banks in advancing gender equality and women’s empowerment

The report outlines four interconnected outcome areas through which banks can influence gender equality. As employers, banks are encouraged to build gender-responsive leadership and work environments by addressing pay gaps, under-representation in leadership, discrimination and workplace safety. Evidence shows that inclusive workplaces support retention, innovation and stronger risk governance.

As financiers, banks can drive a portfolio shift by integrating gender criteria into due diligence, risk screening and capital allocation. Tools such as the WEPs and 2X Criteria are highlighted to help assess whether financed companies meet benchmarks on leadership, employment, ownership and products benefiting women.

As financial service providers, banks play a central role in improving women’s financial health and inclusion. Persistent gaps in account ownership, access to credit and financial resilience remain across regions. The report stresses the importance of collecting and using gender-disaggregated data to design products and services that address barriers such as collateral requirements, digital exclusion and lower financial literacy.

The fourth area, ecosystem shift, focuses on banks’ influence beyond their balance sheets. By engaging in policy advocacy, gender-responsive procurement and partnerships with community organisations, banks can help address systemic barriers and amplify impact. The report notes that progress is cumulative, and banks may start with one outcome area before adopting a more holistic approach.

Part 2: Building a gender strategy: From target setting to implementation

This section provides a structured approach to developing and implementing gender strategies, aligned with UNEP FI’s impact management framework. Banks are advised to begin with a context analysis to understand gender-related needs, risks, regulatory frameworks and stakeholder expectations in their operating environments. This should be complemented by a performance assessment to establish baselines using gender-disaggregated data across the four outcome areas.

The report emphasises setting SMART targets that are specific, measurable, achievable, relevant and time-bound. Banks are encouraged to prioritise targets linked to financing activities, particularly portfolio shift and financial health and inclusion, while recognising that leadership and ecosystem actions support delivery. Quantitative examples include targets for increasing the share of lending aligned with gender criteria, improving women’s access to multiple financial products, or raising the proportion of women in senior management.

Designing and delivering action plans is presented as a critical step. Action plans should define responsibilities, timelines, budgets and milestones, and may include policy reform, product redesign, client engagement, issuance of gender bonds, or supplier engagement. Case studies illustrate practical application, including banks issuing gender bonds, setting lending quotas for women-owned businesses, and revising workplace policies to close leadership and pay gaps.

Monitoring and reporting underpin accountability. Banks are encouraged to track progress regularly, disclose results publicly at least annually, and align reporting with PRB, WEPs, IFRS, ESRS and GRI frameworks where relevant. Transparent reporting is positioned as essential for credibility, stakeholder trust and continuous improvement.