Investing for inclusion: Exploring an LGBTI lens
This is a guide for financial investors aimed at closing the gap between LGBTI communities and investors, emphasizing the economic benefits of LGBTI inclusion and providing a five-step framework for LGBTI lens investment.
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OVERVIEW
This is a comprehensive guide for investors to evaluate LGBTI (Lesbian, Gay, Bisexual, Transgender, Intersex) issues as part of the investment process. The report emphasises the importance of LGBTI-inclusive lens investing as emerging markets are lagging behind developed markets on LGBTI issues. It aims to provide a roadmap for investors on how to invest with an LGBTI lens, considering the opportunities which have the potential to advance inclusion and improve economic outcomes.
The report suggests a five-step approach for investors to incorporate LGBTI lenses into their investment process, providing a detailed roadmap for investors to strengthen LGBTI inclusion and incorporate LGBTI lenses into their decision-making. The recommended approach consists of five steps:
- Selecting an LGBTI Lens
- Applying an LGBTI Lens to Pre-Investment Activities
- Measuring Results
- Focusing on Impact
- Considering Relevant Issues for Structuring Deals with an LGBTI Lens
The report suggests that investors consider geographical focus, legal frameworks, and social norms concerning the gender lens framework in emerging markets. Investors can consider the inclusion of quantitative or qualitative LGBTI targets in negotiations.
Investors are encouraged to expand their knowledge of the LGBTI community to improve their understanding of the business case for investing in this area. LGBTI-inclusive business practices have been shown to create better risk-adjusted returns. Studies have shown that LGBTI-inclusive companies exhibit better operational performance, leading to increased profitability, revenue growth, and global market access.
In conclusion, incorporating an LGBTI lens in investment decision-making can lead to economic benefits while promoting inclusion and gender equality. Investors need to identify opportunities for investment in this area and use the provided roadmap to support inclusive projects and investments. By doing so, investors can improve access to finance, goods, and services, and make a significant socio-economic impact.
