UN Women, International Capital Market Association (ICMA) and the IFC lead the way on public and private sustainable debt for gender equality

 

ICMA_UN Women_IFC - Bonds to Bridge the Gender Gap - A Practitioners Guide to Us16 November 2021 UN Women, IFC and the International Capital Market Association (ICMA) today launched a new practical guide to using sustainable bond issuances to advance gender equality, entitled Bonds to Bridge the Gender Gap: A Practitioner’s Guide to Using Sustainable Debt for Gender Equality.

Gender inequalities persist in every country and society around the world but COVID-19 has revealed how the crisis has disproportionally affected women. With less than a decade remaining to achieve the 2030 Agenda for Sustainable Development, financing solutions that drive gender equality must be accelerated.

Global debt capital markets can play an important role in financing progress toward gender equality in both the public and private sectors. For issuers, these bonds offer an opportunity to lead on advancing gender equality, diversify their investor base, as well as to define and communicate their commitment to the market.

The guide provides both the public and private market useful information on how to use sustainable bonds to finance projects and strategies that advance gender equality and offers illustrative examples of gender-related use of proceeds, as well as key performance indicators (KPIs) and sustainability performance targets (SPTs) in the case of sustainability-linked bonds.

This guide will support the ecosystem of the debt market including new and existing bond issuers, borrowers, underwriters, arrangers, and external reviewers to take action to integrate gender equality objectives into sustainable debt products. It is also a resource for investors seeking to understand and support projects and strategies that are designed to advance gender equality.

“The achievement of gender equality and women’s empowerment, as embodied in Sustainable Development Goal 5, is critical for humanity to progress and realize its full potential. UN Women is proud to be working alongside capital market actors to ensure that financing from both the public and private sectors is sustainable and inclusive. This global guide is a foundational first step in this journey”, said UN Women Executive Director Sima Bahous.

Bryan Pascoe, Chief Executive, ICMA said: “We believe that bond markets have tremendous untapped potential to fund the advances in gender equality which are so essential for sustainable economic development. This new practical guide, based around the use of the established Social Bond Principles and Sustainability-linked Bond Principles, is an important step forward in encouraging issuers and investors to integrate gender into sustainable bond issuances and investment”.

Similar to the way in which the introduction of green bond standards and guidelines facilitated the growth of the green bond market and the development of a separate asset class, these global guidelines on gender will provide the support needed to capital markets to significantly increase the volume and quality of financing for gender equality and lead to lasting impact.

Makhtar Diop, Managing Director, IFC said: “With less than a decade remaining to achieve the 2030 Sustainable Development Goals, we must accelerate financing solutions that drive gender equality. While investor appetite for products that address social issues is growing rapidly, sustainable finance markets have struggled to keep up with demand. The guide we are launching today will help address this by making it easier for issuers to raise funds for these innovative financial instruments”.

“We hope that the public and private sectors will join us in supporting women around the world—and creating better economic outcomes for us all”.
ICMA Zurich

T: +41 44 363 4222
Dreikönigstrasse 8
8002 Zurich
ICMA London

T: +44 20 7213 0310
110 Cannon Street
London EC4N 6EU
ICMA Paris

T: +33 1 70 17 64 72
62 rue la Boétie
75008 Paris
ICMA Brussels

T: +32 2 801 13 88
Avenue des Arts 56
1000 Brussels
ICMA Hong Kong

T: +852 2531 6592
Unit 3603, Tower 2
Lippo Centre
89 Queensway, Admiralty
Hong Kong
 
Copyright © 2021 International Capital Market Association.