Introduction

Gender lens investing (GLI) integrates gender considerations into investment decisions to promote gender equality and women’s empowerment while generating financial returns. The report outlines its growing relevance, benefits, challenges, and practical approaches for investors.

Key insights

GLI is positioned as a strategy that can deliver both financial performance and social impact. It has evolved from focusing on women in leadership (GLI 1.0) to broader organisational practices (GLI 2.0) and access themes such as education, finance, and healthcare. Alignment with SDG 5 is emphasised, alongside the importance of stakeholder collaboration, diversity in investment teams, and robust measurement frameworks.

What is gender lens investing?

GLI involves analysing investments based on their impact on gender equality and financial outcomes. Approaches include screening out harmful companies, investing in women-led firms, and supporting businesses that improve access to essential services. It spans asset classes and increasingly incorporates engagement with companies to improve gender outcomes.

Making the case for a gender lens

The ethical case highlights persistent inequalities, including women earning around 77% of men’s income globally and facing legal and structural barriers.

The business case shows improved performance linked to diversity; companies with strong gender diversity are 25% more likely to outperform, with potential market value gains of $52–70 million annually in Australian firms.

The investment case links gender diversity to lower risk and stronger financial metrics, with gender lens equity funds valued at US$4.2 billion and fixed income at US$8.9 billion (Q1 2023). Risks such as “pinkwashing” require scrutiny of claims.

The economic case demonstrates that reducing gender gaps could increase OECD GDP by up to 12% by 2030. Gender equality also supports climate resilience, food security, and broader development outcomes.

Challenges of gender lens investing

Key barriers include lack of standardised gender data, limiting comparability and impact measurement. Underrepresentation of women in investment roles introduces bias. There are relatively few gender-focused investment products, and awareness remains low, necessitating education and capacity building among investors.

How to invest with a gender lens

GLI 1.0 focuses on women in leadership using measurable metrics. GLI 2.0 expands to policies, workplace culture, pay equity, and supply chains, including initiatives such as parental leave, anti-discrimination programmes, and gender pay audits.

Access themes target areas such as healthcare, financial services, education, and housing, recognising interconnections across social and economic outcomes. An intersectional approach is encouraged to address overlapping inequalities.

Active engagement with companies is critical to improve gender practices where data is limited. Best practices include conducting gender analysis, setting measurable goals, prioritising diversity, collaborating with stakeholders, advocating policy change, integrating GLI across asset classes, and reporting both financial and social outcomes.

Case studies

Examples include funds such as Impax Ellevate and RobecoSAM, which invest in companies with strong gender diversity metrics. The Women in Safe Homes fund addresses housing for vulnerable women, launched with £15.5 million and targeting £100 million. AXA’s social progress fund integrates broader SDG-aligned objectives while maintaining gender equality focus. Collaborative models like Coralus support female-led ventures through pooled capital.

Conclusion

GLI aligns financial objectives with gender equality by applying gender-based analysis across investments. While challenges persist, adopting best practices, improving data, and fostering collaboration can enhance impact. Expanding GLI can support inclusive growth, strengthen investment outcomes, and contribute to broader sustainable development goals.