From Gender-Smart Enterprise Assistance Research Coalition (G-SEARCh)- “This research measured the effectiveness of seven types of TA provided to 21 SMEs across four sectors and three regions. The study confirms that TA activities contribute to positive business and social outcomes for companies and their stakeholders such as employees, customers, distributors, and producers.”

From Parallelle Finance- This report looks at 2021 in review and explores the various dynamics impacting the field of gender lens investing. It provides analyses of gender lens equity funds, DEI equity funds, and gender lens fixed income funds and vehicles.

From The International Development Research Center (IDRC)- This IDRC evidence review looks at the impact of COVID 19 on gender equality and women’s rights and makes the case for investing in child care.

From Donor Committee for Enterprise Development - This paper aims to clarify the synergies between the goals and approaches of Women’s Economic Empowerment and Gender Lens Investing, and to illustrate the possible pathways to close this gap. This document is intended for those working in private sector engagement, with a focus on women’s economic empowerment and gender equality, within donor agencies

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

From AlphaMundi and Value for Women. Over 18 months, AlphaMundi and Value for Women (VfW) piloted strategies designed to both address gender disparities and improve business performance in small and medium enterprises (SMEs) in emerging markets. Learn about these strategies and the exciting early impacts and results.

From HEC Paris. At the senior level, men outnumber women by a 10 to 1 ratio in the private equity sector. Considerations about gender equality notwithstanding, such a testosterone-only environment is not good for the bottom line. A large-scale study of investment deals by HEC Paris professor of strategy and business policy proves that teams with at least one female member dramatically outperform male-only teams. (An interview with Oliver Gottschalg.)

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.

From the Organisation for Economic Co-operation and Development (OECD). Today the digital transformation provides new avenues for the economic empowerment of women and can contribute to greater gender equality. The Internet, digital platforms, mobile phones and digital financial services offer “leapfrog” opportunities for all and can help bridge the divide by giving women the possibility to earn additional income, increase their employment opportunities, and access knowledge and general information. We need to seize this opportunity to foster greater gender equality in the labour market, boost economic growth and build a more inclusive, digital world.

This report explores a range of factors that underpin the digital gender divide, bolsters the evidence base for policy making and provides policy directions for consideration by all G20 governments. The report finds that hurdles to access, affordability, lack of education as well as inherent biases and sociocultural norms curtail women and girls’ ability to benefit from the opportunities offered by the digital transformation. In addition, girls’ relatively lower educational enrolment in disciplines that would allow them to perform well in a digital world – such as science, technology, engineering and mathematics, as well as information and communication technologies – coupled with women’s and girls’ more limited use of digital tools could lead to widening gaps and greater inequality.

By Alina Sorgner, Gloria Mayne, Judith Mariscal, and Urvashi Aneja. Despite the headway the world has experienced over the years in terms of a substantial increase in digital access, there are still significant challenges to overcome in ensuring women are included in the transformation to a digital society and leapfrogging productivity and social development. Efforts to increase internet adoption access through broadband plans and legislative reforms have yielded improvements in use and adoption. However, a stark gender inequality is pervasive in terms of access, ownership of digital devices, digital fluency as well as the capacity to make meaningful use of the access to technology. Even though affordability is a key source of exclusion, there are also significant socio-cultural norms that restrict access for women. This policy brief brings forward the argument that access alone is not enough, women need agency and capacity to leverage access. We thus highlight the need to make an assessment of the global gender gap and develop meaningful indicators that contribute to the design and implementation of effective policies that drive adoption. We need effective promotion of women´s digital adoption not only from the government but from the private sector and civil society to lead the digital adoption for women of best practices around the world.

From Calvert Impact Capital. This seminal paper on gender-lens investing shares practical guidance for creating a gender inclusive investment strategy, learned from evolving the authors’ own gender-lens investment approach:

• Set realistic expectations based on the type of capital you are investing. This, more than anything, practically defines the opportunities that are available to you to invest for impact and the approach you can take to incorporate gender

• Understand the tools at your disposal. The tools to incorporate gender into investment decision-making and analysis vary based on the type of capital and the level of influence and ownership that capital affords the investor

• Gender-lens investing is an art, not a science, and context matters. Gender’s role in investing is nuanced and success looks different depending on the context (e.g., market, geography, sector, etc.)

Incorporating gender into investment analysis might be the quickest route to better performing investments and a more equitable and sustainable world. There’s no one, right way to incorporate gender into your investments. It’s not rocket-science, it’s not niche. It has the potential to improve both financial performance and social impact. In short, it’s just good investing, so get started today.

By Paul Gompers and Silpa Kovvali. Researchers have struggled to establish a causal relationship between diversity and financial performance—especially at large companies, where decision rights and incentives can be murky, and the effects of any given choice can be tough to pin down. So the authors chose a “lab rat” with fewer barriers to understanding: the venture capital industry.

VC firms are fairly flat: Every investor is a decision maker, and choices have clear business consequences. Using publicly available information, researchers can see how similar or different decision makers are and compare decision quality on the basis of investments’ performance.

After examining tens of thousands of VC investments, Paul Gompers has found that diversity significantly improves financial performance on measures such as profitable investments at the individual portfolio-company level and overall fund returns. And even though associating with similar people can have social benefits for people who do so, it can lead investors and firms to leave a lot of money on the table.

In this article Gompers and Silpa Kovvali describe the research and provide recommendations for reaping the business benefits of diversity.

From Transform Finance. What would investment to communities look like if those very communities were part of the process? This report makes the case for grassroots engagement, participation, and governance over investments.

From Glenmede. Racial equity investing seeks to advance racial equity and/or tackle racial inequities in the U.S. while generating financial returns. This investment strategy seeks to close racial disparities in wealth and access to opportunities, resources, and decision-making. Racial equity investing has powerful potential for impact because of its focus on revitalizing socioeconomically marginalized communities. At the same time, this investment strategy may help investors stay ahead of critical demographic trends, serve a growing consumer base, enhance risk management, and identify investment opportunities that can have unique sources of alpha.

From the International Finance Corporation (IFC). This study explores the link between financial returns and gender diversity; the lack of women in the industry; and steps needed to achieve gender balance. One of the key findings of the report is that private equity and venture capital funds with gender-balanced senior investment teams generated 10 percent to 20 percent higher returns compared with funds that have a majority of male or female leaders.

The report draws on gender diversity and performance data from more than 700 funds and 500 portfolio companies; survey results from over 500 fund managers and institutional investors; interviews with more than 50 investors and gender diversity experts; and case studies of more than 10 private equity and venture capital funds and institutional investors that are addressing the gender-imbalance in their own work. The report also gathers recommendations for fund managers and institutional investors to help move the industry towards gender balance.

The case for gender equality has never been stronger—the ethical case as well as the investment and economic cases. Progress, however, remains slow and somewhat patchy, for the same reasons that efforts to tackle other forms of inequality are measured by the turtle’s pace rather than the gazelle’s: The power elite almost never give up ground without a fight. But that’s turning into a losing, if protracted, battle.

By Julie Gorte, PhD, Investments & Wealth Institute

From Criterion Institute. Criterion Institute, in partnership with leading gender lens investors, has identified 10 evidence-based economic patterns and translated them into investment opportunity and risk. Understanding these patterns is critical for investors of all kinds to understand short- and long-term risks, uncover hidden opportunities, and invest to capitalise on both. Understanding these will enable government and impact investors focused on recovery to invest better for the outcomes they seek.

From Women in VC. Any investment in women-led funds stands to have a significantly amplified impact on female founders downstream. It will shift what types of founders are getting funded, at scale, what products and services are brought to market, and who is being served by them. The potential returns are enormous. This report explores the nuances of female partners and women-led funds—the reality, the opportunities available, and the actions needed to move the conversation forward. The data points to an outsized opportunity to anchor and nurture this new wave of women-led funds, and emphasizes why the time to invest in their potential is right now.

From the W.K. Kellogg Foundation. The report projects a tremendous boost to the United States’ workforce and consumer spending when organizations take the necessary steps to advance racial equity. Led by Ani Turner, co-director of Sustainable Health Spending Strategies at Altarum, researchers analyzed data from public and private sources, including the U.S. Census, Johns Hopkins University, Georgetown University, Brandeis University and Harvard University. Their methodology included applying established models to estimate the economic impact of the disparities faced by people of color.

From the Kellogg Foundation. This report seeks to expand the narrative associated with advancing racial equity by adding a compelling economic argument to the social justice goal. Beyond an increase in economic output, advancing racial equity can translate into meaningful increases in consumer spending and federal, state, and local tax revenues, and decreases in social services spending and health-related costs.