The advancement of women benefits all stakeholders

Strengthening the role of women in society is crucial for the economy. Academic research has shown that greater integration of women into the economy could generate significant benefits.

Today, many economies are not taking full advantage of women's potential. Only 47% of women are active in the labour market, compared with 72% of men. This inequality is more pronounced in some geographical regions. According to the IMF, in countries where inequality between men and women is significant, simply reducing this gap would increase economic output by 35%.

Recognising and leveraging the full economic potential of women worldwide

The last two decades have indeed witnessed significant advances in gender equality, which is considered a prerequisite for sustainable development. However, progress has been slow and crises such as pandemics and wars have delayed the process. Moreover, many barriers persist in multiple aspects of society, such as human rights and civil protection, access to healthcare and education, and equal treatment in the workplace.

The implementation by the United Nations of the 2030 Agenda for Sustainable Development, which includes the objective to "achieve gender equality and empower all women and girls" (Sustainable Development Goal 5), clearly demonstrates that further progress is required in this area.

Women as a solution to the labour shortage

One effective strategy for dealing with the labour shortage resulting from an ageing population is to increase the participation of women in the workforce. This approach is increasingly recognised as a necessary response worldwide. For example, in Japan, where the problem is particularly acute, the government has taken multiple measures to encourage women's involvement in the national economy. These measures include generous parental leave policies. Today, the rate of women's participation in the Japanese economy exceeds that of women in the United States and Europe.

Fostering gender equality has clear social implications, but it also brings evident financial benefits.

Although it is difficult to conclusively establish causality, several academic studies, including certain ones conducted by the IMF, have shown a strong correlation between the competitive advantage derived from a proactive gender equality policy and companies' financial performance. This research indicates that appointing women to key positions in management and on boards of directors boosts revenues, leading to an improved operational performance and increased corporate profitability. In general terms, women are considered to be more risk-averse and more mindful of the importance of male-female collaboration, so encouraging innovation, creativity, and more effective decision-making. On the stock market, these companies demonstrating greater gender balance in leadership tend to perform better.

Women play a vital role in purchasing decisions.

The economic benefits associated with the growing participation of women in the labour market commence with an increase in their purchasing power and, by extension, that of households, since women currently influence around 70% of expenditure. Reaching way beyond fashion and beauty, women have asserted themselves in fields traditionally considered as masculine, such as real estate, DIY, and technology. Women tend not to spend individually but rather as a family or in groups, and show greater sensitivity to responsible consumption, particularly when they have children. Moreover, equal pay for men and women could reinforce this trend, with the prospect, for example, of injecting 100 billion dollars a year into the US economy, according to Citigroup.

The financial services industry: a driving force in accelerating gender equality

Greater inclusion of women in the financial system leads not only to increased economic growth but also to a reduction in inequalities. Paradoxically, women generally have less access to financial services despite the fact that their financial assets represent 32% of the world's total. For women to have a real opportunity for social and economic empowerment it will be necessary for them to be given equitable access to the full range of financial services that meet their individual needs while benefitting from appropriate financial education.

It is essential to recognise and fully leverage the economic potential of women worldwide. Indeed, their increased participation in all sectors of the economy could lead to more robust and inclusive economic growth. Women bring unique perspectives, creativity, and diversified expertise to drive innovation and competitiveness in the global marketplace. By investing in women's empowerment, removing barriers to their participation in the economy, and promoting access to education, to resources and to opportunities we could unleash major economic potential and build a more prosperous future for everyone.

To capitalise on this structural trend, we launched the Women Empowerment Certificate in 2020; it has shown strong performance both for the year 2023 (+21%) and since its introduction (+42%), so confirming the attractivity of this theme. The portfolio is built around two main axes: firstly, companies promoting female representation, and secondly, those offering products and services contributing to women's development.