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Inclusive gender and climate finance

Investing at the nexus of gender and climate finance has been evolving in recent years: from the development of new research and case studies that help make the case for this approach and illustrate its benefits, to the emergence of tools to support investors in adopting an integrated approach. Yet few of these examples and tools have engaged intentionally with the full breadth of intersections between climate action, gender and a broader inclusive and JEDI lens in the investment community. This guide is designed to help investors and investment intermediaries do just that.

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A Guide Toward Diversity, Equity, and Inclusion (DEI) in Data Collection

From Charles and Lynn Schusterman Family Philanthropies- This guide was developed for organizations that seek to apply a diversity, equity and inclusion (DEI) lens to their internal data collection processes and assess and improve how they collect constituent information through tools such as alumni surveys and program evaluations.

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Metrics That Matter: Best Practices from Diversity, Equity and Inclusion Practitioners and Academics

From The Center for Financial Planning- This report presents articles from academics and practitioners. These articles outline recommendations and lessons learned based on their research and experience with the goal of diversifying the financial planning profession. Each article addresses a different stage and component of the diversity, equity and inclusion (DEI) journey.

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Diversity in the Asset Management Industry

From Willis Towers Watson This paper covers:

  • Our beliefs around the importance of diversity as a key ingredient of success for asset managers

  • The importance of looking beyond asset management ownership to understand diversity and what really drives performance

  • Our approach to measuring diversity and asset management culture and how we are engaging with the asset management industry

  • The initial findings of our assessment of diversity and the positive link to performance outcomes

  • The tools we have developed to assess and assist asset managers and asset owners to help bring about change in the area of diversity

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A Communications Guide: Building Engagement on Gender-Inclusive Sourcing

From Women’s Forum for the Economy & Society. This paper offers insights and practical guidance for procurement professionals and Diversity, Equity & Inclusion advocates to build engagement and inspire action on supplier diversity and genderinclusive sourcing. Part of the Women4Business Toolkit for Action, it includes key steps for building engagement internally, with suppliers, and in external communications. The guide features case studies of best practices to deepen knowledge in the field, along with a set of talking points and key resources to strengthen the case for advancing supplier diversity and inclusion globally.

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Redesigning Lending: Improving Access to Capital for Women of Color Entrepreneurs

From CNote. This report reflects insights from BIPOC women entrepreneurs collected through survey responses from over 75 women, more than 40 hours of individual interviews, and a two-day convening of 20 women. Research participants represented a diversity of racial and ethnic backgrounds, industries, geographic regions, and stages of business. Additionally, Impact Experience surveyed more than 20 CDFIs, capital providers, and intermediaries to better understand the challenges that community lenders face when women of color come to them for lending.

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Women in the Workplace 2021

From McKinsey. A year and a half into the COVID-19 pandemic, women in corporate America are even more burned out than they were last year—and increasingly more so than men. Despite this, women leaders are stepping up to support employee well-being and diversity, equity, and inclusion efforts, but that work is not getting recognized. That’s according to the latest Women in the Workplace report from McKinsey, in partnership with Leanin.Org.

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Closing the Gender and Race Gaps in North American Financial Services

From McKinsey. An updated view into gender and racial diversity in financial services—as well as women’s day-to-day work experiences—reveals some progress. But challenges in building an equitable and inclusive workplace persist.

At the beginning of 2021, women in North America remained dramatically underrepresented in the financial-services workforce—particularly at the level of senior management and above. A new industry-specific analysis of data from the latest Women in the Workplace report, a McKinsey collaboration with LeanIn.Org, reveals a leaky pipeline from which women are falling out in greater numbers as they progress up the career ladder, resulting in significant inequality at the top. Consistent with previous years, women in financial services continue to experience a “broken rung” at the first step from entry level to manager—where they are significantly less likely than men to be promoted (for more about our research, see sidebar “About the research and findings”). At the same time, women leaders have taken on the additional responsibilities of supporting employees and investing in diversity and inclusion during the COVID-19 pandemic—but they aren’t being rewarded for this critical work.

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Applying an Equality and Equity Lens to Measuring Social Impact Outcomes

From Big Society Capital. Social inequalities were a dominant concern in 2020, as a result of Covid-19 and the resurgence of the Black Lives Matter movement. These events led to overdue conversations around how we address systemic injustice. Big Society Capital has put these discussions front and centre, looking at how they can contribute to greater equality. Within these approaches, embedding an equality and equity lens across how they manage and measure impact, is key. They launched their revised Outcomes Matrix, first developed in partnership with New Philanthropy Capital (NPC), Social Value UK, Investing for Good and Outcomes Star, and is hosted by Good Finance. It has been an important practical impact management and measurement tool within the social impact investment sector. The tool has helped more than 40,000+ Good Finance users to plan and measure their social impact. With this redesign, they aim to embed an equality and equity lens in the way organisations measure outcomes. Ensuring that reducing inequality is at the forefront of conversations, when organisations are managing and measuring impact. In this blog post they explore how they went about the redesign process, the three key changes we have made and why.

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Putting the Community Back into Business: What Te Ao Māori Can Teach Us About Sustainable Management

By Ben Walker, Erin Roxburgh-Makea, Jesse Pirini, and Stephen Cummings. Walk into any boardroom or business school and you’ll often hear the same companies held up as models of excellence: Apple, Tesla, Google and so on. Sharing success stories from te ao Māori (the Māori world)? Not so much. And that’s a shame. There are many of them, and they can teach us how to manage and grow organisations in sustainable ways that benefit the wider community — goals that often elude large Western businesses.

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Female Entrepreneurship Can Help Fuel a Fairer, More Productive Future

By Alison Rose. As we’ve witnessed in recent months, our economic and social challenges are complex and interconnected. In order to achieve truly effective and sustainable solutions which benefit a broad spectrum of communities, we must not disenfranchise a diversity of entrepreneurs from making their economic contribution. We need to keep this at the forefront of our agendas, and ensure female entrepreneurship helps fuel a fairer, more productive future.

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Guide for General Counsels: Insights into Ethnicity Pay Gap Reporting

From Hogan Lovells. This Guide is aimed at General Counsels who advise Boards on a regular basis. It looks at the legal considerations behind ethnicity pay gap reporting, in particular the data protection and employment concerns, that can become a perceived barrier to publishing these statistics.

It also seeks to debunk the legal myths that may prevent organisations from publishing their reports, and analyses the anatomy of a really powerful ethnicity pay gap report. The Guide is designed to start a crucial conversation about how to innovate in an area of policy and law that is in flux, beyond the obligations that have been in place for gender pay gap reporting since April 2017.

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An Economy for All: How Philanthropy Can Unlock Capital for Women Entrepreneurs and Entrepreneurs of Color through Inclusive Investing

From Arabella Advisors. This report, updated in August 2021, explores how foundations, philanthropists, and impact investors can begin to address the biases they face, unlock access to capital, and build a more equitable economy for all through inclusive investing.

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VC Human Capital Survey

From Deloitte. The venture capital (VC) industry appears to be making progress in achieving greater gender, racial, and ethnic diversity. Some progress has been made in expanding the representation of women in leadership positions, particularly for investing professionals. In addition, of the VC firms surveyed, more are adopting diversity and inclusion strategies than before, and firms with these strategies report having more diverse workforces than other VC firms. However, the pace of progress has been uneven across diversity demographics—there has been little increase in the representation of Black and Hispanic employees in the overall industry and in leadership positions. At the talent management level, few of the firms surveyed conduct employee surveys to assess their progress in creating a more inclusive workplace. While the improvements indicate a positive trend, the data indicates the industry has work to do to achieve a long-term diverse workforce.

These are some of the key findings of the third edition of the VC Human Capital Survey, powered by the National Venture Capital Association (NVCA), Venture Forward, and Deloitte to assess the state of diversity, equity, and inclusion (DEI) in the VC industry. The survey provides a source of information that allows firms to benchmark themselves against industry practices and helps them identify innovative approaches to promote DEI.

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Diversity Wins: How Inclusion Matters

From McKinsey & Company. Diversity Wins is the third report in a McKinsey series investigating the business case for diversity, following Why diversity matters (2015) and Delivering through diversity (2018). This latest report shows not only that the business case remains robust but also that the relationship between diversity on executive teams and the likelihood of financial outperformance has strengthened over time. These findings emerge from their largest data set so far, encompassing 15 countries and more than 1,000 large companies. By incorporating a “social listening” analysis of employee sentiment in online reviews, the report also provides new insights into how inclusion matters. It shows that companies should pay much greater attention to inclusion, even when they are relatively diverse.

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