ESG Thema #22 - Closing the gender gap in credit investing

Persistent gender disparities in economic opportunity and access to finance continue to constrain global growth and resilience – particularly in emerging markets, where institutional barriers remain deeply entrenched. According to the World Bank’s 2024 “Women, Business and the Law” report, eliminating discriminatory laws and practices that hinder women’s participation in the workforce could increase global GDP by over 20%, effectively doubling the global growth rate over the next decade. Reducing gender employment gaps could raise GDP per capita by an average of 35%, with productivity gains from workplace diversity contributing over half that value.

Key Takeaways

  • Gender equality is an economic and investment imperative: Eliminating gender-based barriers could boost global GDP by over 20%. Gender disparities – especially in emerging markets – remain a major constraint on inclusive growth and economic resilience.
  • Gender-focused bonds are nascent but essential: The gender-focused bond market comprises less than 2% of all Sustainable Bonds. However, IFC data suggests there has been significant growth in both the number and volume of gender bonds between 2013 and 2024. Its continued growth and credibility will hinge on the active participation of impact and institutional investors who can align capital with gender frameworks and hold issuers accountable for outcomes.
  • Enhanced ESG screening can expand the investable universe: Even in the absence of gender focused Sustainable Bonds, investors can apply gender-smart ESG frameworks to identify sovereigns and corporates with credible commitments to gender equality. These frameworks should assess both policy and performance, favoring transparency and measurable progress.
  • Intent-impact gap remains a core challenge: Many gender-focused Sustainable Bonds fail to track gender-specific KPIs. Only 5% of these bonds include outcome-level indicators. The lack of gender-disaggregated data and inconsistent reporting continues to impede market growth.

You can now read the full whitepaper at the link below