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Banks have a vital and multidimensional role to play in advancing gender equality and women’s empowerment. As employers, financiers, financial service providers and participants in broader economic, political and social ecosystems, banks are uniquely positioned to advance gender equality within their own institutions, in the marketplaces within which they operate and in the communities that they serve. Despite progress, gender inequality remains a persistent challenge, sustained in part by chronic financing gaps. Systemic barriers such as adverse gender and social norms and structural discrimination constrain women’s access to resources and opportunities, affecting women as both employees and customers of the banking sector. Women make up over half of the banking workforce but are under-represented in leadership roles, holding just 23 per cent of executive positions. Meanwhile, gender gaps in f inancial health and inclusion persist across many regions of the world, including an estimated global credit gap of USD 1.5 trillion for women entrepreneurs. Gender equality is a human right and is crucial for fostering healthy and inclusive economies. It is also a strategic imperative for banks. Aligning finance with gender equality objectives can help banks to tap into new markets, customer segments and unmet demand. Globally, it is estimated that new interest income from banks providing small and medium-sized enterprise loans to women at the same rate as men would be USD 30 billion. Empowering women as leaders, employees, entrepreneurs, suppliers and customers can help a bank to strengthen its climate and social risk governance, boost innovation, and foster trust and loyalty with its customers. This guidance aims to support banks in building holistic gender equality and women’s empowerment strategies structured around four interconnected outcome areas: 1. Gender-responsive leadership and work environment focuses on a bank’s role as an employer in providing decent work in which employees of all genders, roles and levels participate fully. 2. Portfolio shift considers how banks—as financiers—can drive changes in the real economy through corporate and business clients, by integrating gender-focused criteria into due diligence processes and aligning financial flows with gender equal ity and women’s empowerment objectives. 3. Financial health and inclusion focuses on a bank’s role as a financial service provider in supporting women, girls and women-owned and women-led micro, small and medium-sized businesses to access, use and benefit from financial products and services that ultimately support their financial health. 4. Ecosystem shift considers banks’ wider impact in influencing or partnering with governments, suppliers and communities to drive systemic change beyond the f inancial sector. Aligned to the Principles for Responsible Banking and the Women’s Empowerment Principles, this guidance equips banks to set targets, drive progress and establish transparent and accountable monitoring and reporting practices in each of the four outcome areas. Resources and tools are provided to support banks at each step in this process, enabling them to: ◾ Undertake a context analysis to understanding the gender-related needs, risks and opportunities and relevant regulatory and policy frameworks within the bank’s operating context. ◾ Complete a performance assessment to understand the bank’s current performance across the four outcome areas, which can be used to set a baseline for targets. ◾ Set specific, measurable, achievable, relevant and time-bound (SMART) targets. ◾ Design and deliver action plans to achieve the targets set, with clearly defined roles, timelines and resources. ◾ Monitor and report on progress. Whether a bank is just beginning its gender equality journey or seeking to deepen its commitment, this guidance provides a clear, actionable pathway to impact. It supports banks to take meaningful steps to integrate gender equality into workplace-related policies and practices, business strategies and portfolios, products and services. By applying these insights, banks can drive progress towards a more equitable and resil ient financial system, and healthier and more inclusive economies that benefit people of all genders.

Advancing Gender Equality and Women’s Empowerment: Target-setting guidance for banks

Resource Key: 8LASN3WR

Document Type: Report

Creator:

Author:

  • UNEP FI
  • UN Women

Creators Name: {mb_resource_zotero_creatorsname}

Place: Geneva and New York

Institution: UNEP FI; UN Women

Date: 2024

Language: en

Banks have a vital and multidimensional role to play in advancing gender equality and women’s empowerment. As employers, financiers, financial service providers and participants in broader economic, political and social ecosystems, banks are uniquely positioned to advance gender equality within their own institutions, in the marketplaces within which they operate and in the communities that they serve. Despite progress, gender inequality remains a persistent challenge, sustained in part by chronic financing gaps. Systemic barriers such as adverse gender and social norms and structural discrimination constrain women’s access to resources and opportunities, affecting women as both employees and customers of the banking sector. Women make up over half of the banking workforce but are under-represented in leadership roles, holding just 23 per cent of executive positions. Meanwhile, gender gaps in f inancial health and inclusion persist across many regions of the world, including an estimated global credit gap of USD 1.5 trillion for women entrepreneurs. Gender equality is a human right and is crucial for fostering healthy and inclusive economies. It is also a strategic imperative for banks. Aligning finance with gender equality objectives can help banks to tap into new markets, customer segments and unmet demand. Globally, it is estimated that new interest income from banks providing small and medium-sized enterprise loans to women at the same rate as men would be USD 30 billion. Empowering women as leaders, employees, entrepreneurs, suppliers and customers can help a bank to strengthen its climate and social risk governance, boost innovation, and foster trust and loyalty with its customers. This guidance aims to support banks in building holistic gender equality and women’s empowerment strategies structured around four interconnected outcome areas: 1. Gender-responsive leadership and work environment focuses on a bank’s role as an employer in providing decent work in which employees of all genders, roles and levels participate fully. 2. Portfolio shift considers how banks—as financiers—can drive changes in the real economy through corporate and business clients, by integrating gender-focused criteria into due diligence processes and aligning financial flows with gender equal ity and women’s empowerment objectives. 3. Financial health and inclusion focuses on a bank’s role as a financial service provider in supporting women, girls and women-owned and women-led micro, small and medium-sized businesses to access, use and benefit from financial products and services that ultimately support their financial health. 4. Ecosystem shift considers banks’ wider impact in influencing or partnering with governments, suppliers and communities to drive systemic change beyond the f inancial sector. Aligned to the Principles for Responsible Banking and the Women’s Empowerment Principles, this guidance equips banks to set targets, drive progress and establish transparent and accountable monitoring and reporting practices in each of the four outcome areas. Resources and tools are provided to support banks at each step in this process, enabling them to: ◾ Undertake a context analysis to understanding the gender-related needs, risks and opportunities and relevant regulatory and policy frameworks within the bank’s operating context. ◾ Complete a performance assessment to understand the bank’s current performance across the four outcome areas, which can be used to set a baseline for targets. ◾ Set specific, measurable, achievable, relevant and time-bound (SMART) targets. ◾ Design and deliver action plans to achieve the targets set, with clearly defined roles, timelines and resources. ◾ Monitor and report on progress. Whether a bank is just beginning its gender equality journey or seeking to deepen its commitment, this guidance provides a clear, actionable pathway to impact. It supports banks to take meaningful steps to integrate gender equality into workplace-related policies and practices, business strategies and portfolios, products and services. By applying these insights, banks can drive progress towards a more equitable and resil ient financial system, and healthier and more inclusive economies that benefit people of all genders.

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