Sustainable finance taxonomies with gender equality considerations

Sustainable finance taxonomies have emerged as a key policy tool in global efforts to channel capital towards sustainable development priorities. While notable progress has been made globally in the publication of green-oriented taxonomies, which classify economic activities based on their contribution to environmentally sustainable objectives, less emphasis has been placed to date on socially sustainable objectives, including gender equality. A just transition to a resilient future for all relies on accelerating investment in gender equality and social inclusion.

Within this context, this issue paper aims to provide guidance on integrating gender equality considerations into sustainable finance taxonomies. It covers both how gender equality can be targeted as a priority objective within social- and sustainability-oriented taxonomies as well as how gender equality considerations can be integrated into green-oriented taxonomies. The paper underscores the need to go beyond just codifying a list of gender-labelled activities to systematically integrate gender equality considerations throughout the taxonomy development process: from governance structures to technical criteria to monitoring and consultation.

Considering that gender is a more nascent area in taxonomies, the paper highlights emerging examples as well as insights and lessons learned from other relevant policy toolkits and methodologies for practitioners.

Targeting financial regulators, government authorities, financial institutions, the private sector, gender advisors, and other stakeholders, this paper seeks to contribute to evolving conversations on social objectives in taxonomies and to support the development of new taxonomies and the enhancement or refinement of existing ones to better support gender equality and women’s empowerment objectives.