Investment for Social Good: Women’s empowerment and climate action at the forefront of the Orange Movement
As reform becomes the buzzword in post-revolution Bangladesh, it’s crucial to acknowledge and appreciate women’s role in broader business activities and investment
Thanks to the July-August Monsoon Revolution in Bangladesh, which saw a regime change in the country, opening up, among other things, a window of opportunity to bring in both systemic and institutional reforms in the beleaguered South Asian economy nation, which is otherwise resource-starved and prone to climatic stresses.
As reform becomes the buzzword in post-revolution Bangladesh, it’s crucial to acknowledge and appreciate women’s role in broader business activities and investment. In a typical Bangladeshi society, where women are often seen as someone who is meant to look after household chores, this awareness is a step towards enlightenment and progress.
It will be interesting to see how the issues concerning women’s role in the economy and investment get the much-needed priority in the reform agenda of a new Bangladesh that has long suffered from an authoritarian political landscape not conducive to women’s emancipation beyond a threshold. And, probably, it’s an opportune moment for initiatives like the ones championed by IIX-led impact investment, provided it aligns well with the newfound aspirations of women in Bangladesh.
Young women in their late teens, students, and women from working classes in Bangladesh participated extensively in the recent successful revolution, essentially led and bolstered by young students, their teachers and guardians, and other members of society.
If the aim of impact investing is making investments to help create beneficial social effects while generating financial gains, the IIX has been a beacon of success in fulfilling that overarching goal over the last 15 years. Its consistent efforts and achievements in this field provide reassurance and confidence in the potential of impact investing.
The point of impact investing is to use money and investment capital for positive social results while generating a financial return.
The global impact investing pioneer Impact Investment Exchange (IIX) is one institution that ventured into relatively uncharted territory, employing different asset classes, such as stocks, bonds, etc., to open up newer frontiers of possibilities—possibilities for social good.
Take the Orange Movement™, an initiative driven by IIX and its Steering Committee members, as one example of attaining financial sustainability by emphasizing gender equality and climate action.
Launched in 2022, the Movement is dedicated to protecting the planet and driving critical investments in gender equality and climate action through empowering women, girls, and gender minorities. IIX believes in the mantra that women account for half of the world’s population and hold the key to transformative changes that accelerate climate action, sustainable peace, and economic stability.
The Orange Movement™ also created a new asset class, Orange Bond, to unlock US$10 billion in capital markets by 2030, impacting 100 million women, girls, and gender minorities.
An increasing number of people are now getting involved in the Orange Movement™ by signing the ‘Orange Pledge,’ marking their commitment to creating a gender-empowered financial system for a climate-resilient future.
Worldwide, over 290,000 signatories have pledged their support of the Orange Movement™, which has mobilized US$274 million and impacted as many as 2.7 million lives at the intersection of gender equality and climate action.
At the forefront of the impact investing movement, IIX has been reshaping finance for sustainable development for over a decade. IIX’s work has spanned 60 countries, unlocked US$500 million of private-sector capital, positively impacted over 160 million direct and household lives, and avoided over 1.9 million metric tons of carbon.
IIX covers the entire sustainable investing spectrum, offering diverse products and platforms to attract capital and equity from investors. Its dedication includes fostering inclusive businesses, measuring tangible real-world impact, providing advisory services, and tailoring solutions to meet sustainability objectives. Additionally, IIX bridges knowledge gaps through educational and research initiatives.
IIX has made significant strides with its Women’s Livelihood Bond™ (WLB) Series, a groundbreaking set of gender-lens financial products that empower women and girls across diverse countries and sectors. The WLB Series qualifies as Orange Bonds and supports marginalized communities in emerging markets. To date, IIX has launched six issuances, mobilizing US$228 million and impacting 2.6 million lives, with its most recent issuance at US$100 million—the largest Orange Bond in the market so far. As IIX continues building momentum, with its seventh issuance expected this year, it is also advancing its mission through innovative tools to enhance impact.
One such tool is IIX Intelligence™, a pioneering impact analytics platform fueled by 15 years of IIX Values™. This platform integrates, evaluates, and benchmarks data from sustainable micro, small, and medium enterprises (MSMEs), providing invaluable insights into gender diversity, climate action, ESG standards, and community risk management. This further strengthens IIX’s ability to drive meaningful social change.
With a keen focus on gender equality and climate action, IIX’s tailored investment strategies drive sustainable growth, empower marginalized communities, and foster economic resilience at the grassroots level in Bangladesh.
The impact investment landscape in Bangladesh focuses on financial inclusion, healthcare, agriculture, clean energy, and a circular economy. IIX has invested USD 6 million in Bangladesh, which has positively impacted the lives of around seven million people. The IIX Impact Partners platform supported 58 enterprises in gaining greater access to investment capital, technical assistance, and capital raise support, which were provided to 12 enterprises.
Prof Durreen Shahnaz, Founder and CEO of IIX, hails from Bangladesh, and she profoundly understands the region’s challenges and potential. When she was asked by this paper recently what the one thing that can better the lives of women in Bangladesh is, Prof. Durreen Shahnaz said: “Truly make them a part of the global financial markets. The current regulations don’t allow us to do much regarding the country’s financial markets. To make our women compete on equal footing with women across the globe, we need to allow Orange Bonds and Women’s Livelihood Bonds to happen in Bangladesh. We must boldly celebrate Bangladeshi women and allow them to join the global financial system.”
Her book, The Defiant Optimist, traces her journey from Dhaka, Bangladesh, to the US and Singapore to determine whether capital markets can have a conscience and whether social impact can be measured.
IIX is working with a missionary zeal for economically empowering women, girls, and gender minorities. It employs various financial tools to advance the cause of women’s emancipation further, and innovative initiatives like the Orange Movement™ come as a welcome move. By signing the Orange Pledge, more people can contribute to advancing the causes of the Orange Movement™.
Source: Dhaka Tribune | 24 October 2024
