Milestone as DFIs, MDBs, and Private Sector Players Join 2X Challenge 2024-2027
VANCOUVER, CANADA – JUNE 17, 2024 – Deetken Impact joins a multilateral coalition of public and private sector investors yesterday that pledged to invest US$20 billion (bn) in women’s economic empowerment over the next three years, under the 2X Challenge.
The announcement came at the close of the G7 Leaders’ Summit in Italy, with the official communiquè affirming support from among the grouping’s development and multilateral finance institutions:
“Recognising the success of the 2X Challenge, we welcome the new collective commitment by our Development and Multilateral Finance Institutions and other members of 2X Global, to invest at least USD 20 billion in gender lens investing in developing countries, encouraging investments at the nexus of gender and climate finance.
We call upon other public and private actors to join the next three-year 2X Challenge, advancing measurable changes and financing directed to women’s empowerment.”
This will be the third edition of the 2X Challenge, which was first launched at the G7 Summit 2018 in Canada, as a commitment from the G7 development finance institutions (DFIs) to mobilise US$3 bn in gender lens investments between 2018 to 2020.
The first Challenge significantly surpassed that target, raising more than US$11 bn. A new target of US$15 bn was set at the G7 Summit 2021 in the United Kingdom and was also subsequently surpassed with US$16.3 bn raised between 2021 to 2022. As of 2024, more than US$33.6 bn in gender lens investments have been mobilised under the 2X Challenge.
Having expanded to include the full spectrum of capital providors, this announcement marks the first time that private investors join the 2X Challenge. Seven private sector participants have already committed to the 2X Challenge – they are: Deetken Impact, the Global Innovation Fund, I&P Investisseurs & Partenaires, Developing World Markets (DWM), Advance Global Capital, Global Gender-Smart Fund (GGSF), run by Innpact and Sarona Asset Management.
Jessica Espinoza, Chief Executive Officer of 2X Global, the independent organisation which runs the Challenge, hailed this new phase in the initiative:
“This is really a significant milestone in the journey of the 2X Challenge – something which we’ve hoped for and worked towards making a reality. Having both public and private capital providers on board for the Challenge represents an extraordinary opportunity to mobilise even more gender-smart capital for women, unlocking their potential and driving economic growth.
Combining the resources and expertise from both the public and private sectors means we can amplify our impact as we strive to close the gender gap in finance.”
“Deetken Impact is extremely proud to be one of the first private investors to join the 2X Challenge. Encouraged by the impressive results this initiative has achieved, we are eager to contribute towards its further expansion. With over a decade of dedication to women’s empowerment, we reaffirm our commitment to advancing gender equality through investments designed with intention to catalyse meaningful and transformative change.”
“FinDev Canada is proud to be a founding member of the 2X Challenge. We welcome the private sector members’ participation in this next iteration of the Challenge. Together, DFIs, MDBs and the private sector, we can do more to advance gender equality, especially at the nexus of gender and climate finance, through better access to finance.”
A range of DFIs and MDBs have pledged their support for the 2X Challenge 2024-2027. They are:
- Asian Development Bank
- British International Investment (United Kingdom)
- Belgian Investment Company for Developing countries (Belgium)
- CDP Development Finance (Italy)
- DEG – Deutsche Investitions- Und Entwicklungsgesellschaft (Germany)
- U.S. International Development Finance Corporation (United States)
- European Investment Bank – EIB
- FinDev Canada (Canada)
- Finnfund (Finland)
- FMO Entrepreneurial Development Bank (Netherlands)
- International Finance Corporation
- Investment Fund for Developing Countries (Denmark)
- Japan Bank for International Cooperation (Japan)
- Japan International Cooperation Agency (Japan)
- Norfund (Norway)
- Development Bank of Austria – OeEB (Austria)
- Proparco (France) and;
- Swedfund (Sweden)
- Swiss Investment Fund for Emerging Markets (SIFEM)
Under the 2X Challenge, investments are qualified using the 2X Criteria, the framework which underpins the Challenge and which has become widely used as the global industry standard for GLI. Participating investors submit their qualified gender lens investments through the Challenge platform, powered by Equilo.
The Case for Investing in Women
- If women and men were to simply participate equally as entrepreneurs, global GDP could rise by 3-6%, boosting the world economy by US $2.5-5 trillion.
- The European Investment Bank estimates that greater gender diversity in the workforce could lead to a potential increase of 26% of annual global GDP and US $160 trillion of human capital wealth, and could enhance business performance by 15%.
- Over 10 years of investing, companies with a female founder performed 63% better than those with all-male founding teams.
In a study of Russell 1000 companies, Glenmede Investment Management found that firms with greater gender diversity (defined as: female CEO or Chair; greater than 20% women on the board; and greater than 25% women in management) outperformed with greater return and less risk.
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Contact
For Deetken Impact:
Heather van Mil
Communications & Marketing Associate, Deetken Impact
Email: h va****@de*****.com
For press queries:
Amanda Lynch-Foster
Communications Lead, 2X Global
Email: am****@2x******.org
For 2X Challenge participation queries:
Jo McDonnell
2X Challenge Lead, 2X Global
Email: **@2x******.org
About Deetken Impact
Deetken Impact is a Canadian registered impact asset manager delivering strong, stable returns to investors by supporting businesses making meaningful contributions to the SDGs in Latin America & the Caribbean. Managing US$145 million in assets across five award-winning funds, Deetken Impact has been recognized as an Impact Assets 50 Manager since 2020.
A diverse and balanced team of seasoned investment professionals across the Americas has invested in 61 companies meaningfully advancing gender equality. Beyond mobilizing capital and innovating impact measurement standards, Deetken Impact has pioneered technical assistance projects addressing key obstacles of gender-smart investing and business practices in the region, while helping launch and steer Canada’s first Gender Lens Investing Community of Practice by Canada Forum for Impact Investment and Development (CAFIID), and representing Deetken at the United Nations’ 66th Commission on the Status of Women.
About 2X Global
2X Global is a membership and field-building organisation focused on unlocking gender-smart capital at scale. We engage the full spectrum of investment actors, capital providers, and intermediaries working in public and private markets, across both developed and emerging economies towards this mission. Through a broad and diverse set of activities we activate and engage our global community to advance intersectional investment agendas, scale the field, shift mindsets, and facilitate capital deployment. Learn more at www.2xglobal.org.
About the 2X Challenge
The 2X Challenge was founded by the G7 Development Finance Institutions as a call to action to shift more capital towards investments that empower women in developing countries to access entrepreneurship and leadership opportunities, quality jobs, and products and services that enhance their economic participation. Since then, the flagship initiative has raised gender lens investments totaling US$33.6 Billion.
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