The United Nations Environment Programme Finance Initiative (UNEP FI) is all set to launch Advancing Gender Equality and Women’s Empowerment: Target Setting Guidance for Banks, curated with the aid of UN Women during its 2024 Global Roundtable. This initiative is designed to support the critical role banks play in closing the gender gap by providing clear, actionable steps to prioritise women’s empowerment in the workplace, marketplace, and community.
The guidance aligns with the UN Sustainable Development Goal 5, which seeks to achieve gender equality and empower all women and girls. Building on the Principles for Responsible Banking (PRB) and the Women’s Empowerment Principles (WEPs), the guidance outlines a holistic framework for action. It includes workplace policies, business strategies, and financial products and services, along with metrics to track progress, checklists to assess current practices, and case studies showcasing successful implementations by financial institutions worldwide.
The need for such action is underscored by the persistent inequality faced by women and girls globally. Systemic barriers, such as structural discrimination, adverse gender norms, and a disproportionate share of unpaid caregiving, limit women’s access to education, employment opportunities, and financial resources. In the banking sector, these disparities are stark.
According to Equileap’s 2023 report, while women make up more than half of the banking workforce, they occupy only 23% of executive roles. Similarly, the SME Finance Forum’s MSME Finance Gap report highlights a global credit gap of USD 1.5 trillion for women entrepreneurs, pointing to significant gender gaps in financial health and inclusion.
Recognising women as key agents of change due to their roles as financial decision-makers, asset accumulators, employees, and business owners, UNEP FI’s new guidance outlines critical pathways for banks to address these disparities. It calls for fostering gender-responsive leadership and inclusive work environments that provide decent opportunities for employees of all genders. Additionally, banks are encouraged to integrate gender-focused criteria into their business portfolios, driving real-world economic changes and aligning financial flows with women’s empowerment objectives. Improving financial health and inclusion is also emphasised, with a focus on enhancing access to financial products and services for women, particularly those leading or owning businesses. Beyond the financial sector, banks are urged to collaborate with governments, suppliers, and communities to drive systemic change.
By setting measurable targets, tracking progress, and establishing transparent reporting practices, UNEP FI’s initiative equips banks to play a leading role in building a more inclusive and equitable financial system. The ambition is not only to advance gender equality but also to create a resilient and sustainable economy that benefits people of all genders. Through this initiative, UNEP FI aims to empower women while fostering broader societal and economic transformation.
