A powerful reminder of why we do what do

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Subject: A powerful reminder of why we do what do

2X Global: Unlocking gender-smart capital at scale

Dear Friend,

Every now and then, the universe sends a powerful signal to remind us why we do what we do.

One such reminder rippled through the gender lens investing (GLI) ecosystem in recent weeks sparking spirited discussion but also incisive and thoughtful rebuttals, such as this one from Mary-Ellen Iskederian, President and CEO of 2X Global member Women’s World Banking.

Mary-Ellen’s reminder to investors to “base their decisions on relevant and contextualised data” is timely and necessary.

Far from being shaken in our commitment to advancing GLI, we are ever more resolute. Make no mistake, we have seen the analysis and the data used.

We have also seen analysis and data not used - such as our recently published Project Catalyst study which has clearly demonstrated the continued growth and deepening of gender lens investing. Gender lens investing in private markets has grown by more than 30% in the past two years, with the minimum market size of GLI funds now assessed at US$7.9 billion in aggregate capital, compared to US$6 billion in 2021.

Project Catalyst also showed us that gender lens investments are flowing into sectors in which women have traditionally been poorly represented, such as real estate, infrastructure, transportation and industry and manufacturing. This augurs well in the face of arguments that 'underperformance' is due to underrepresentation in key industries driving market returns.

There is so much more that could be said about the need for deeper, more nuanced standards for what constitutes gender lens investing and what should be considered a gender fund.

Fortunately, we will be saying a lot more about this very soon when we officially launch 2X Certification, our independent, in-depth GLI certification system designed to drive higher standards in gender lens investing.

Two years on from when 2X Certification was first announced during the G7 Summit 2022 under Germany’s presidency, we are putting on the finishing touches as we prepare to bring 2X Certification to the market. It is the culmination of two years of intensive, industry-informed co-creation, benefiting from the input of nearly 600 stakeholders and the most rigorous and relevant research and analysis.

While a culmination, the launch of 2X Certification will also mark the start of a new paradigm in gender lens investing, offering investors the opportunity to go beyond self-reporting to independent and credible standard setting and the ability to guard against box-ticking and impact-washing.

2X Certification will be launched in September from the stage at our 2X Global Summit 2024 in Nairobi, Kenya.

2X Global Summit 2024

And last, we’re thrilled to give you some additional insights into our upcoming 2X Global Summit. Formerly known as our Annual Member Meeting, this year’s summit will be co-hosted by MEDA, and will take place in Nairobi, Kenya between September 16th to 18th.

The Summit begins with our Learning Day on September 16th where participants can choose from a range of peer learning and capacity building programming.

September 17th will be the Plenary Day and fittingly, with the Summit’s location in Kenya with its vibrant tech and innovation scene, it will focus on exploring “Investing in Women in Tech” capitalising on and showcasing the richness of technology innovation in Kenya.

September 18 will be Member Day, with opportunities for deeper engagement, small group workshops and focused networking with others in the 2X Global network.

The 2X Global Summit is a member-exclusive event. For more information on the Summit and membership, contact our membership engagement team at membership@2xglobal.org.

Read on for a selection of GLI news and insights.

In Community,

2X Global team

News from the field

Mainstreaming gender lens investing. It's unicorn status for women-led software company Creatio after its $200 million Series B funding round closed this month at a valuation of $1.2 billion. Creatio is a portfolio company of 2X Flagship Fund Horizon Capital. In her own words: Melinda French Gates shares which organisations and leaders will benefit from the initial $1 billion in grants from her new organisation, Pivotal Ventures, focused on shoring up the fight for women's and girls' rights around the world. Philanthropic Foundations Canada has published its first ever Landscape Report, surveying the state of the philanthropy sector in Canada. Read it here. DEG and its subsidiaries DEG Impact and DEG Impulse, has developed a new market study and investor guide on responsible investment in digital technology. What lies ahead for the African continent? The African Development Bank has mapped out its development plans and priorities for the next decade, publishing its Ten Year Strategy 2024-2033. How did AlphaMundi Foundation, with support from DEG Impulse, support companies in their investment portfolio in East Africa, in embedding gender-smart practices, how did it work in practice and what were the results? Check out this new case study at Impact Alpha for details. Take a deep dive into women-led financial innovation in this report from WAI looking at how women investors in Africa are mobilising local capital to introduce new investment models and funding instruments into the market. Over $7 billion in funding extended to over 50,000 SMEs - and there's more. Our member Advance Global Capital has published its seventh Annual Impact Report, shedding light on its work and approach over the past year. At the halfway point of the UNDP's Gender Equality Strategy 2022-2025, what has been accomplished and what remains to be done? UNDP has published its Annual Report which highlights the midterm review and second year of implementation of the strategy.

Gender and Climate Investing. Meet the members of the International Climate Finance Accelerator Luxembourg 2024 cohort - dynamic fund managers advancing forward thinking climate solutions through investment. Costa Rica's first blue bond, from Banco Nacional de Costa Rica, is getting interest and investment from FinDev Canada ($20 million) and IDB Invest ($25 million), among others. A study from the Ellen McArthur Foundation and WWF explores the implications for MSMEs of a legally binding, global plastics treaty aimed at ending plastics pollution. The 2024 OECD's Development Cooperation Report is examining the "silent but devastating crisis" of growing inequality and poverty in low and middle income countries and where the green transition is amidst all this. A first of its kind report on green jobs in Africa out now from FSD Africa, Shortlist and the Boston Consulting Group, is projecting 3.3 million new green jobs on the continent by 2030. Also from OECD - a report on current OECD country practices in measuring climate adaptation, plus a framework for what needs to be measured and how. What works and what doesn't when it comes to supporting women climate entrepreneurs? A new paper offers guidance for those considering funding or designing interventions targeting women climate entrepreneurs and WSME-responsive climate initiatives. Canada and the Asian Development Bank are partnering on a new, CAN$360 million fund supporting private sector projects in the APAC region that are focused on climate and nature-based solutions. For investors looking to increase or even get into the climate investment space, BII and FMO have just published a new playbook with a holistic overview of climate finance, the opportunities and how to invest.

Leadership, Culture and Policy, JEDI. Sustainability bonds are increasingly popular, seen by development practitioners as a solution for increasing needed finance to key areas such as climate and the blue economy. This UNDP working paper looks at how to make sustainability bonds more productive. Discover where your country is ranked in the new, twin indices on women's empowerment and gender equality from the UNDP's new report "The Paths to Equal". The study covers 114 countries, providing new data and a multidimensional view on the progress towards the SDGs. Weeks after a court ruling against the Fearless Fund, diversity funds and Black founders report they are already feeling the chilling effects.

Data and Tools. How do you mitigate gender bias within the investment process? This new toolkit from Value For Women, helps provide an equity lens for investors to guide decision-making. Some new guidance is out to assist fund managers in emerging markets seeking to navigate the EU’s Sustainable Finance Disclosure Regulation (SFDR). View and download here. Out now: the English language version of GSG Impact JAPAN’s Annual Impact Investor Survey. A useful evidence brief from Innovations for Poverty Action, summarising a range of studies focused on financial innovations designed to assist women in overcoming barriers in accessing credit and finance. I&P partnered with 60 decibels to measure the impact of their Education to Employment (IP2E) fund, speaking directly to more than 5,000 alumni of 18 different education institutions across West Africa. Find out what they learned here.

Resilience (GBV, Financial Inclusion, Security).UNCTAD's 2024 Digital Economy Report highlights the link between the digital economy and the environment, underscoring the need to balance increasing digitalisation and technological innovation while considering the impact this has on the environment and sustainability. Sierra Leone took a major step forward in July 2024, signing a ban on child marriage into law. In this op-ed, advocate Josephine Kamara argues that the next step must be to end female genital mutilation (FGM). Meanwhile in Gambia, parliamentarians this month rejected an effort to overturn that country's 2015 FGM ban. As technology has evolved, chillingly so has gender-based violence and harassment. A new multi-country study by the Generation G partnership, helps close the knowledge gaps around technology-facilitated gender-based violence in seven countries. This new study from BII examines challenges and opportunities in providing digital financial services for women-owned and women-led MSMES, making the business case for financial service providers to consider adopting digital financial services as they look to grow their customer base. Armed conflicts are often started, led and perpetrated by men, while women in war zones pay a disproportionate price in disruption, deprivation and increased threat of GBVH. This op-ed calls for us listen to the female voices in war zones. New data from clinical trials seems to show that a twice-yearly shot of is hugely effective in preventing HIV transmission among women and girls enrolled in the study.

Care Economy. Acknowledging the role of grandparents, Sweden has launched a new law that will allow grandparents to benefit from paid parental leave when they take care of their grandchildren. The first market map of the United Kingdom's tech-enabled care economy has just been published by 3 Sisters Ventures. From The 19th*, an analysis of the presumptive new Democratic presidential nominee Kamala Harris’s possible agenda on the care economy. The narrative of lower female workforce participation in India leaves out a big part of the picture - unpaid caregiving. Once this is factored in, this op-ed argues, more women than men are actually working.

Community Calendar

30 July, 2024

Join the Catalytic Climate Finance Facility for a webinar, Gender and Energy Nexus within Climate Blended Finance. Register here.

7 August, 2024

Join AEEI, the non-profit arm of Viridian, for the launch of their research report, Women Angels in Africa, examining women angel investors in Africa. Register here to participate.

16-18 September, 2024

The 2X Global Summit 2024 will be held in Nairobi, Kenya this year, co-hosted by MEDA. For more information and to register, visit 2xglobal.org/membership.

31 July, 2024

2X Global is hosting two interactive Membership Information Sessions where you can find out more about our growing community, engage with peers in gender finance and ask any questions you may have. Register here.

14 August, 2024

Want to learn more about 2X Certification ahead of the official launch in September? Sign up for 2X Certification office hours being offered next month.

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Subject: A powerful reminder of why we do what do