Gender-lens investing is rapidly expanding as investors and regulators increasingly prioritise gender factors for sustainable finance. Five questions to Maritza Cabezas Ludena about why and how the financial sector should contribute to stimulate gender equality.

What role does the financial sector play in promoting gender equality?

"On the one side, gender equality is crucial for financial institutions, both in fostering diverse, capable workforces and in boosting financial performance by investing in businesses that support equal opportunities. On the other side, financial institutions play a key role in promoting gender equality by increasing financial inclusion and access to capital for women. This strengthens women's economic independence and increases households' resilience to financial shocks."

What are the main barriers to gender equality in the financial sector?

"Important barriers include deeply rooted social norms and stereotypes, as well as a lack of gender-disaggregated data. This hinders effective decision-making and policy. In addition, there are challenges in access to finance for female entrepreneurs and the lack of gender-responsive employment conditions, such as adequate parental leave arrangements and fair remuneration."

Why is gender equality important in Triodos Investment Management's investment policy?

"Gender equality is fundamental to our mission because it contributes to human rights such as access to education, work and property. Recognising that women make up half the global population, our strategy intentionally integrates gender equality into our investments. By financing women-led businesses and supporting inclusive workplace policies, we help build resilient, equitable communities. Companies that are committed to gender equality benefit from a broader talent pool, improve their risk profile and create both social and economic value."

How can gender factors be integrated into the investment process?

"Triodos Investment Management’s strategy uses a structured approach that incorporates gender factors throughout the investment process, starting from the initiation phase. As a value-based investor, we ensure through our minimum standards that our investments do no harm, so that businesses use money in ways that benefit people and the environment. The companies selected with a gender focus ideally will facilitate the transitions that we have chosen in the path towards sustainability."

What instruments and strategies can be used to promote gender equality through investments?

"We use various financing instruments, including microfinance, SME financing and blended finance, with a focus on emerging markets. We have other funds investing in listed companies globally. These investments support female entrepreneurs, promote access to childcare, and recognise the role of women in agriculture and resource management."

In conclusion, gender equality is vital for individual empowerment and sustainable transitions. Investors play a critical role in advancing gender equality by making intentional investment decisions that promote equal treatment and sustainable development.