ESG Thema #22 - Gender Integration In Credit Markets

• Gender equality is an economic and investment imperative: Eliminating gender-based barriers could boost global GDP by over 20%. Gender disparities – especially in emerging markets – remain a major constraint on inclusive growth and economic resilience.

• Gender-focused bonds are nascent but essential: The gender-focused bond market comprises less than 2% of all Sustainable Bonds. However, IFC data suggests there has been significant growth in both the number and volume of gender bonds between 2013 and 2024. Its continued growth and credibility will hinge on the active participation of impact and institutional investors who can align capital with gender frameworks and hold issuers accountable for outcomes.

• Enhanced ESG screening can expand the investable universe: Even in the absence of gender focused Sustainable Bonds, investors can apply gender-smart ESG frameworks to identify sovereigns and corporates with credible commitments to gender equality. These frameworks should assess both policy and performance, favoring transparency and measurable progress.

• Intent-impact gap remains a core challenge: Many gender-focused Sustainable Bonds fail to track gender-specific KPIs. Only 5% of these bonds include outcome-level indicators. The lack of gender-disaggregated data and inconsistent reporting continues to impede market growth.

• Proactive Technical Assistance (TA) is essential: First-time or smaller issuers – especially in emerging markets – need more hands-on support. TA should focus on establishing baselines, selecting context-appropriate KPIs, and structuring gender-focused reporting to help close persistent data gaps.

• Engagement is a powerful catalyst: As the largest European asset manager, Amundi’s size and the extent of its stewardship capabilities are powerful levers to influence issuers. Amundi’s engagement with 55 issuers in 2024 on gender equality has resulted in demonstrated progress in corporate gender integration. However, continued dialogue is needed to expand the adoption of gender equality policies and disclosures.

• Regulatory convergence can drive market maturity: Harmonizing standards across frameworks (ICMA, 2X, OECD, etc.) – and offering practical guidance for embedding gender – can transform gender from an optional overlay into a core pillar of sustainable finance design.

• National taxonomies offer a model for integration: Countries like Mexico and Brazil have incorporated gender into their sustainable finance taxonomies. These models offer replicable frameworks for defining gender-aligned investment at the sovereign level.

• Data and verification infrastructure remain weak: Fragmented systems, underutilized KPIs, and inconsistent Second Party Opinion (SPO) guidance impede investor confidence. Emerging mechanisms like the Orange Bond Initiative¹ show promise but require broader uptake and standardization.

• Corporate and sovereign issuers both play a role: Companies can embed gender in leadership, operations, and supply chains; governments can align bond proceeds with public gender policies. Both types of issuers can drive market scale and integrity.

• The future lies in integration, not isolation: The next evolution of gender finance must center gender through a transversal lens – embedded in capital structures, issuer strategies, and performance metrics – rather than siloed products or labels.

1. See https://orangemovement.global/orange-bonds