Changing lenses for development: Investment as a boost to women
In an article published on the IDB Invest blog, it is concluded that investment with a gender lens (GLI) obtains a great social impact and a safe and sustainable long-term return on investment (ROI), generating profitability while pushing for gender equality. The authors of the article state that closing the gender gaps in companies will lead to a clear improvement in productivity and competitiveness rates in Latin America and the Caribbean (LAC).
The GLI focuses on investing in companies that promote female leadership within their organization, investing in businesses or companies that are owned and/or run by women, and thirdly, it promotes investment in companies that develop products and services that improve women’s quality of life.
In a recent event held in Mexico City, on the opportunities and challenges for women, some cases were presented that show the benefits of the gender perspective in companies. For example, investment funds that have a gender balance in their investment portfolio reduce their risk profile and improve their profitability. The companies with more diverse chains of command make better strategic decisions, are likely to be more productive and are better positioned to compete in the market. And finally, financial institutions that increase their investment in female clients benefit from a lower default rate and greater long-term loyalty.