Investing in an Equal Future (Triodos Bank)

Summary

• Globally, 48% of women are active in labour markets compared to 73% of men, with the global gender labour gap falling by only 1 percentage point annually over the past three decades.p.6
• Gender equality in entrepreneurship could add $5-6 trillion in net value to the global economy, representing a $1.7 trillion growth opportunity for financial institutions worldwide.p.7
• Women-owned or led businesses worldwide receive only about 2% of total venture capital investments and obtain on average only about 70% of the funding that men receive.p.15
• Out of 190 countries tracked by the World Bank, less than half provide financial or tax support for parents with young children and only 35 countries have adopted pay transparency enforcement measures.p.9
• More than two-thirds of all loan clients at the financial service providers funded by Triodos financial inclusion funds are women.p.15
• In 2022, blended finance involving government and development agency capital accounted for approximately 77% of capital financing integrating gender equality.p.16

Key insights

1. Parity in labor participation between men and women could add an additional 26% to annual global GDP in 2025.p.6
2. Companies with more than 30% women in top management achieve a 20% higher net internal rate of return.p.6
3. Loans extended to women entrepreneurs have a 1.2% lower default rate due to more predictable income sources and debt discipline.p.6
4. Globally, 85% of women take charge of day-to-day household expenses, making financial inclusion critical for family stability.p.6
5. Removing legal barriers to employment, loan access, and retirement security could expand global GDP potential by $13 trillion.p.6
6. In low-income countries, the number of women intending to start a business is twice as high as in high-income countries.p.7
7. Women comprise more than 40% of the agricultural labor force in developing countries, yet the majority remain excluded from formal banking services.p.13
8. The updated March 2025 Fair Finance Guide methodology requires financial institutions to ensure 40-60% representation of women in board and executive leadership roles.p.11