For impact investors, the United Nations Sustainable Development Goal (SDG) 5: Gender Equality presents a clear opportunity to generate long-term value, while addressing one of the most urgent and foundational challenges of our time.

At the current pace, gender equality is more than a century away.1 If nothing changes, global gender parity may not be achieved until 2148. In developing economies alone, an annual investment shortfall of $420 billion continues to stall progress.2 This delay is not only a moral concern, it’s also an economic one.

Reducing gender disparities in labour markets could boost gross domestic product (GDP) in emerging and developing economies by nearly 8%; fully closing the gap could increase average GDP by up to 23%.3 In the EU, progress on gender equality could add between €1.95 and €3.15 trillion to the economy by 2050.4

You might also like: Investing in SDGs: Guiding global impact and sustainable returns

SDG 5: Gender Equality

SDG 5 focuses on achieving gender equality and empowering all women and girls. It’s both a stand-alone goal and a key enabler of progress across the wider SDG Agenda.

Yet today, that potential remains underutilised. Women globally earn 20% less than men for comparable work, perform 2.5 times more unpaid care work, and have just 64% of the legal rights that men enjoy.5 In 2024 alone, 277 million more men than women accessed the internet.6

The implications stretch far beyond gender alone. Gender equality strengthens outcomes in health, education, climate resilience and economic growth. It helps families, communities and entire countries to thrive.

Investing in women

Investing in women creates compounding value. Moody’s analysis suggests that closing gender gaps in the labour market could raise global output by over 6%, and by nearly 10% in Organisation for Economic Co-operation and Development (OECD) member countries.7 Gains are even greater when women access higher-paying, high-productivity roles.8

These figures highlight the broader point: Gender equality is not just a social goal. It is a driver of economic resilience, innovation and sustainable growth.

You might also like: Opening doors with Quality Education: Investing in SDG 4

Investment areas that drive gender equality

1. Financial inclusion

Target: SDG 5.a – Give women equal rights to economic resources

Roughly 745 million women remain financially excluded.9 In low- and middle-income countries, women are still 5% less likely than men to have a bank account.10 Without access to credit, savings, insurance or digital payments, women are less able to start businesses, build assets or withstand financial shocks.

Financial inclusion supports independence, resilience and improved household well-being. It also contributes to broader economic stability.

One example is Ecobank Côte d’Ivoire’s Gender Bond, which raised $16 million to support 1,200 women-led small and medium enterprises (SMEs) in West Africa in March of this year. The bond attracted investment from the International Finance Corporation (IFC) and African Local Currency Bond Fund, helping strengthen local financial ecosystems and drive inclusive growth.

Opportunities for investors include:

  • Microfinance institutions targeting women entrepreneurs
  • Gender-lens impact funds
  • Social bonds focused on women’s economic empowerment

You might also like: Full sail ahead: Investing in SDG 14: Life Below Water

2. Gender-diverse companies

Target: SDG 5.5 – Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life

Women remain underrepresented in leadership roles across sectors. Just 11% of Fortune 500 companies are led by women.11 Globally, fewer than one in four CEOs, board chairs or parliamentarians are women.12

Yet companies with gender-diverse leadership are 39% more likely to financially outperform their peers.13 Firms with gender-balanced boards also report stronger governance and better impact performance.14

Gender diversity in leadership has a ripple effect. A 10% increase in women at the executive level correlates with a 2.1% rise in female representation at all levels within two years.15

Opportunities for investors include:

  • Gender-lens investing that prioritises diversity metrics
  • Investments in female-led firms with strong inclusion policies
  • Allocations to fund managers with gender-diverse leadership

3. Women’s health and reproductive rights

Target: SDG 5.6 – Universal access to reproductive health and rights

Women’s health continues to be under-researched and underfunded. Just 5% of global healthcare research and development is allocated to women’s health, despite the fact that women spend 25% more of their lives in poor health than men.16

Sexual and reproductive ill-health alone accounts for one-third of the disease burden among women of reproductive age.17 Almost half of all pregnancies globally are unintended, and a significant portion of unintended pregnancies (45%) end in unsafe procedures.18 Unintended pregnancies contribute to maternal death and limit women’s participation in education and work.19

Closing the gender health gap could potentially contribute up to $1 trillion annually to the global economy by boosting productivity, reducing healthcare costs, and improving overall health outcomes for women.20

In the UK, every £1 invested in obstetrics and gynaecology yields an estimated £11 in return.21

Opportunities for investors include:

  • Development of diagnostics, medical devices and digital health tools designed for women
  • Investment in maternal care and reproductive health services
  • Support for inclusive clinical research and healthcare workforce training

4. Empowerment through technology

Target: SDG 5.b – Enhance the use of enabling technology to promote the empowerment of women

The digital gender divide limits both opportunity and progress. While women and men have largely attained equality in internet access and mobile ownership in high-income countries, women are 22% less likely to use the internet in low- and middle-income countries.22 Fewer women are entering the technology workforce, and they are globally underrepresented in high-growth digital roles.23

This divide starts early. Nine in ten adolescent girls in low-income countries remain offline, missing opportunities for digital learning and empowerment from a young age.24 The long-term effects are significant—both socially and economically.

Closing the digital gap could add $1.5 trillion to GDP in developing economies.25

Opportunities for investors include:

  • Telecommunications infrastructure in emerging markets
  • Digital literacy and skills training for women and girls
  • Gender-focused venture capital in technology and education

You might also like: Why emerging markets – and why now?

A more inclusive future

Investing in SDG 5 is one of the most effective ways to drive inclusive, long-term value. Gender equality has the potential to raise global GDP by more than 20%, which would double the rate of global growth over the next decade.26

The benefits go far beyond economics. When women thrive, families, communities and societies thrive with them. From healthcare and finance to leadership and digital inclusion, each investment in women contributes to a more resilient and sustainable future. The full potential of half the world’s population remains untapped. For impact investors focused on the gender lens, SDG 5 is not only necessary — it is a powerful opportunity to shape a more equal, prosperous and sustainable world.