Milestone May: 2X Challenge raises $16.3 Billion in two years, and highlights from the field

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Subject: Milestone May: 2X Challenge raises $16.3 Billion in two years, and highlights from the field

2X Global: Unlocking gender-smart capital at scale

Dear Friend,

It’s been a very exciting month as 2X Global celebrated a milestone of 100 members and our flagship initiative, 2X Challenge, exceeded its ambitious target of $15 Billion for the period of 2021-2022.

The initiative first launched at the G7 Summit 2018 as a joint commitment by the Development Finance Institutions (DFIs) and has raised gender lens investments totaling US$ 16.3 Billion from 2021-2022, benefitting 473 businesses across Asia, Africa, Central and Eastern Europe, Latin America and the Caribbean. This brings the total investments under the 2X Challenge since 2018 to US$ 27.7 Billion. The news was covered in Forbes, Impact Alpha and Pioneers Post. You can read more about it on the 2X Challenge website.

Last week at the Annual General Meeting of the Association of European Development Finance Institutions (DFIs) in Copenhagen, our CEO Jessica Espinoza joined the CEOs of the European DFIs for an interactive panel discussion about the latest 2X Challenge achievements and the journey ahead. During the discussion, the EDFI CEOs reiterated their commitment to 2X and gender-smart investing. In related industry news, EDFI appointed Luuk Zonneveld as their new Chairperson, who currently serves as the CEO of the Belgian Investment Company for Developing Countries (BIO).

In Community,

2X Global team

News from the field

Mainstreaming gender lens investing. A conversation on gender lens investing - growing the field, setting new standards, understanding the challenges and shaping the future. Key trends and findings about growth, opportunities, and challenges for gender lens investing in Southeast Asia, with a focus on private markets. An e-learning course based on USAID’s 2023 Gender Equality and Women’s Empowerment Policy. Commitments made by the UN and major humanitarian organisations to promote gender equality and empower women and girls. A journey through the gender-focused bond market and why gender bonds offer a promising solution for direct financing towards projects that reduce gender inequalities. Innovative financing instruments that have been launched across developed and emerging markets, with gender equality as a theme for financing. The World Bank Group’s gender thematic policy notes series, summarising promising areas for future engagement on promoting gender equality and empowerment.

Gender and Climate Investing. The Gender-Responsive Diagnostic (GRD) tool engages directly with agribusinesses to identify opportunities for greater gender inclusion. New data reveals the important intersection of gender and climate change in Asia and the Pacific. 23 venture capital firms are joining the movement for net zero by supporting early-stage climate startups to cut emissions and scale sustainably. On how development impacts (DIs) can be a core benefit of climate finance. Power Africa has awarded four grants to companies that promote productive uses of energy to empower Kenyan women. Organisations that are working to bring diverse perspectives to climate solutions. Financial inclusion is a tool that can help people experiencing poverty build resilience to climate shocks. Public financing is crucial for supporting the most vulnerable and facilitating private sector investments where funding and support is needed most. How the impacts of climate change differ by gender. Re-thinking how we address food crises by integrating social protection with gender and climate goals to further empower women and promote sustainability. Examining how access and usage of financial services can help build resilience in the face of climate shocks.

Leadership, Culture and Policy. The Nigerian Exchange Group (NGX) Plc has been awarded the EDGE certification, highlighting the progress the company has made on diversity, equity, and inclusion and its commitment to ensuring equal opportunities across its talent pool. The future of gender equality in Australia requires a systems-led intersectional approach. Gender equality advocates provide evidence-based solutions to influence the G7 countries to take greater action on gender equality both at home and in their international commitments. The Feminist Foreign Policy Index is a quantitative framework that explores what a feminist foreign policy could be. The 2023 report on gender equality in the EU. A new report found that despite some improvements over the past year, many women are still not getting what they want or need from their employers. New research shows that women are more effective than men in all leadership measures. The ways that gender equity and power dynamics affect the success of business operations and results. LinkedIn data looks at the progress and barriers that women face in the workplace. SOCAP announces its 2023 theme and content curation council, with two 2X Global members a part of this year’s Gender Lens Investing Council.

Resilience (GBV, Financial Inclusion, Security). An overview of the current state of women’s financial inclusion in Honduras and in Uganda. Insights for running innovative pilots to support better access to and usage of digital remittances for migrants’ broader financial inclusion and resilience. The Mastercard Foundation Fund for Rural Prosperity supports a diverse portfolio of 38 participant companies providing financial products and services in 15 countries in Sub-Saharan Africa. On how to improve access to debt financing for women-owned or led small and medium enterprises. Case study of the Carnaval de Barranquilla event, viewed as a boost for the region’s economy and serving as an engine that fuels the development of Latin American cities.

Data and Tools. The 2023 Board Diversity Index is the only comprehensive analysis of Australian boards which measures diversity beyond the conventional dimension of gender. The gender data playbook is a step-by-step guide for financial ecosystem stakeholders on how to boost the systematic collection of high-quality, supply-side, sex-disaggregated financial data to drive women’s financial inclusion. Making the case for why women are one of the most significant growth markets we’ve ever seen. How programs like Goldman Sachs’ 10,000 Women are helping tackle the massive global credit gap estimated at $1.5 trillion.A new study mobilizing data from 17 African countries with over 40,000 respondents examines gender differences in ten self-reported socio-emotional skills and their relationship with education and earnings.

Care Economy. Reconfiguring the childcare industry in a way that better serves caregivers and employers. The Asia-Pacific Care Accelerator supports women-led or women-benefitting entrepreneurs with innovative solutions to transform caregiving challenges into employment and business opportunities. Caregiving startup Wellthy lands $25 million to help caregivers feel less overwhelmed. Caregiving costs women nearly $300,000 in lost pay over their lifetimes. A big renovation grant from European donors for 150 Armenia kindergartens will make them more energy efficient.

JEDI, Power, and New Economic Systems. The critical role of the private sector in addressing inequality and the powerful reasons why business must act with urgency. UBS’s refresher on how diversity, equity and inclusion are connected to the actions of investors. Why co-creation is the key to building an inclusive impact fund. The Council for Inclusive Capitalism shares its member progress, exploring how members are advancing their commitment goals. The Kellogg Foundation offers a how-to on DEI for finance employers. Illumen Capital, a fund-of-funds focused on racial and gender diversity in investing, has closed its second fund at $168 million. The Equality Fund’s Gender-Lens Investing Criteria is a free resource for investment decision-makers who want to take a more impactful approach to investing in marginalized groups. Revisiting the importance of gender diversity in asset management firms. Intersectional practices to promote social justice and reduce inequalities.

Community Calendar

7 June, 2023

2X Member Meet up in Toronto, Canada. These events convene practitioners who are engaged in or curious about gender lens investing. Register here.

20-22 June, 2023

The AVPN Global Conference is one of the world’s leading conferences focused on intersections between research, policy and practice – with the goal of improving lives globally. Get your tickets here.

27-30 August, 2023

Latimpacto - Impact Minds: Standing Together will convene the Latin America and Caribbean impact ecosystem to promote innovative proposals and alliances to attract more capital. Register here.

6 September, 2023

Convergence XX: Systemic Risk and the Future of Justice is a virtual month-long convening that will unite thought leaders from across the fields of finance and social change to explore social injustices as a systemic investment risk. Register here.

12-14 September, 2023

ANDE Annual Conference hosts this year's event in Accra, Ghana with the theme Accelerating Action: Small Business Solutions and the SDGs. The West Africa Regional Conference is scheduled on the second day of the conference. Register here.

18-19 September, 2023

UN SDG Summit 2023, New York. At the mid-point implementation of the 2030 Agenda for Sustainable development, the summit will follow-up and review the progress made towards the 17 Sustainable Development Goals. Learn more.

28-29 September 2023

The 2X Annual Members’ Meeting 2023, hosted by 2X Global in partnership with the European Investment Bank (EIB), will be held in Luxembourg this year. Members can RSVP here before June 30th.

2X Ignite is launching an introductory and acceleration programme for 25 female-led or gender-balanced fund managers across the Asia-Pacific region. If you are interested in becoming a fund manager, or if you already have a fund and would like to accelerate your timeline, join our programme. Applications close on June 14th.

Learn More

2X Flagship Fund Announcement

Horizon Capital Growth Fund IV (HCGF IV) exceeded its target size today, doubling commitments to $254 million and becoming the first fund in Central and Eastern Europe (CEE) to be awarded the 2X Flagship Fund status. The fund will provide growth capital to technology and export-oriented diverse entrepreneurs in Ukraine and Moldova.

Thank you to our partners and supporters

Field Builders