Key terms in gender financing

Blended finance is the strategic use of development finance for the mobilization of commercial finance towards sustainable development in developing countries.

A bond is a fixed income investment vehicle. A loan made by an investor to a borrower, with a fixed or variable periodic interest rate and a date on which the loan principal is due. Bonds are issued by borrowers in private placement or public offering transactions and traded in over-the-counter markets or via listing on public markets exchanges.

ESG (Environmental, Social, and Governance) is an investment method that shareholders and institutional investors consider with the company’s financial factors in terms of “sustainable investment” when making investment decisions in a company, reflecting social and ethical values and eco-friendly sustainability.

Gender mainstreaming is the intergovernmentally agreed global strategy for achieving gender equality. According to the ECOSOC, gender mainstreaming is “...the process of assessing the implications for women and men of any planned action, including legislation, policies or programmes, in all areas and at all levels. It is a strategy for making women’s as well as men’s concerns and experiences an integral dimension of the design, implementation, monitoring and evaluation of policies and programmes in all political, economic and societal spheres so that women and men benefit equally and inequality is not perpetuated. The ultimate goal is to achieve gender equality.”

Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets and target a range of returns from below market to market rate, depending on investors' strategic goals.

Thematic bonds are traditional fixed income instruments which allow investors to finance specific investment themes such as climate change, health, food, education, access to financial services and target specific Sustainable Development Goals (SDGs) through investing.

Gender bond:  are a type of sustainable bond to credibly access financing for projects and strategies that advance gender equality and women's empowerment, contributing to the achievement of Sustainable Development Goal (SDG) 5. They are issued by governments, development banks, or private entities with the goals to empower women in leadership, employment, supply chain, productivity or services and communities, or to achieve a life free of violence, socioeconomic advancement and empowerment, and redistribute and reduce unpaid care and domestic work for women.

Social bonds are any type of bond instrument that exclusively applies the proceeds, or an equivalent amount, to finance or re-finance, in part, or in full, new or existing eligible Social Projects that align with the four core components of the Social Bond Principles: i) Use of Proceeds; ii) A Process for Project Evaluation and Selection; iii) Management of the Proceeds; and iv) Reporting.

The Sustainable Development Goals are a collection of 17 interconnected global goals designed to be a "blueprint to achieve a better and more sustainable future for all" by 2030. They were adopted by all United Nations Member States in 2015 as part of the 2030 Agenda for Sustainable Development.

Sustainable Development Goal 5 is one of the 17 SDGs established by the United Nations, which aims to achieve gender equality and empower all women and girls by 2030

Sustainability bonds are bonds that exclusively apply the proceeds to finance or re-finance a combination of both Green and Social Projects. Sustainability Bonds align with the four core components of both the Green Bond Principles and the Social Bond Principles. The Green Bond Principles is especially relevant for Green Projects, and the  Social Bond Principles for Social Projects.

Sustainability-linked bonds are any type of bond instrument for which the financial and/or structural characteristics can vary depending on whether the issuer achieves predefined Sustainability/ environmental, social, and governance (ESG) objectives.

The principles for responsible banking are a framework developed by UNEP FI are six principles (alignment, target setting, clients and customers, stakeholders, governance and culture, transparency and accountability) infuse purpose and ambition into sustainable finance, shaping member banks' operations, portfolios and engagements with clients and stakeholders.

Responsible investments involve considering environmental, social and governance (ESG) issues when making investment decisions and influencing companies or assets (known as active ownership or stewardship). It complements traditional financial analysis and portfolio construction techniques.

The Women’s Empowerment Principles are a set of seven Principles offering guidance to business on how to promote gender equality and women's empowerment in the workplace, marketplace and community.