Mobilist partners with Amundi on gender bond framework for emerging markets
11 June, London. The UK government’s MOBILIST programme is partnering with Amundi to develop a first-of-its-kind gender-aligned investment framework for fixed-income investments in emerging markets.
MOBILIST is providing technical assistance funding to support further development and strengthening of a framework for investing in emerging market sovereign and corporate bonds that demonstrate strong or improving gender practices. This funding will also be used to provide dedicated training to emerging market issuers on gender equality and diversity issues and promote best practices on gender lens investing.
2x Global, the global industry body for promoting gender lens investing, describes it as an investment approach that integrates gender analysis into investment processes for better social and financial outcomes.
While the volume of bond issuances aligned to gender equality objectives has grown steadily in recent years, gender bonds continue to account for just over 1% of the total proceeds of green, social, sustainability and sustainability-linked (GSSS) bonds. Gender bond issuance also remains concentrated in developed markets, partly due to a lack of knowledge and awareness regarding gender smart practices in the fixed-income investing space in emerging markets. Gender smart practices refer to practices that incorporate the understanding that gender is material to financial, business, and social outcomes.
The framework and training provided through MOBILIST’s technical assistance funding will expand awareness on gender lens practices, with better guidance and gender metrics set to benefit both issuers and investors. A gender-investing guidebook with guidance on how to approach gender-themed bond issuance will also be published with insights from various stakeholders. The funding aims to grow both the supply of gender bonds and the demand from investors, to direct capital flows into this critical financing gap.
Ross Ferguson, Senior Private Sector Adviser leading the MOBILIST programme within FCDO, said: “MOBILIST’s technical assistance will mark a significant collaboration with Europe’s largest asset manager, Amundi. This collaboration will expand knowledge on gender bond issuances and gender smart practices and reflects MOBILIST’s ongoing focus on mobilising private investment toward sustainable development in emerging markets through innovative new products that have the potential to list on public markets.”
Esther Law, Senior Portfolio Manager and Responsible Investing Lead for Emerging Markets at Amundi, said:
“At Amundi, we believe that closing the gender gap is vital for driving sustainable growth in emerging markets. We are excited to partner with MOBILIST to enhance our initiatives aimed at empowering emerging market issuers with the knowledge and tools to integrate gender equality into their practices. By promoting the growth and development of the gender-focused investible universe, we can foster an inclusive investment landscape that unlocks new opportunities and creates lasting impact for all stakeholders.”
The IMF estimates that emerging market economies could boost GDP by over 8% in the next few years by raising the rate of female labour force participation by 5.9%.