Why women can change the world through investment
Today, women are still less inclined than men to invest. This gender inequality in finance is a global problem that limits not only women's financial opportunities but also their potential to influence a better future for the planet.

What you need to know

  • While women make up half of the world’s population, they only manage approximately $72 trillion, the equivalent of one-third of the world’s wealth.
  • 61% of women between the ages of 30 and 40 choose their investments based on their social or environmental impact.
  • If women were to invest at the same rate as men, there would potentially be an additional $1.870 trillion dedicated to responsible investing.
Foresight Updated on October 21, 2022

Why are there such inequalities?

Before we look at the benefit of more female investors, let’s look at what has caused this disparity.

1) A commitment problem: According to a study conducted by JP Morgan, 64% of women do not feel confident investing and consider the process complicated.

2) Income problem: Women tend to believe that they need more money than they actually have in order to invest, so there is an urgent need to clarify this myth.

3) The risk issue: According to a study by BNY Mellon, almost half of women (45%) feel that investing their money in the stock market is too risky for them.

Women in impact investing

Socially Responsible Investment (SRI) consists of excluding sectors considered harmful to society or the planet and is often linked to the investor’s ethics. This is how “negative screening” was born, this term allows to limit the damage without acting in favour of the causes. Therefore, in order to respond to major global concerns, it is essential to integrate a third dimension into asset allocation decisions, in addition to return and risk: impact.

About the Authors

Julien Lescs

Julien Lescs

Pyschodynamics & Impact Investing

Julien is co-founder of Kimpa, a family office dedicated to impact investing. Grandson of an agricultural family business that was destroyed in a fratricidal war, Julien has become a specialist in psychodynamics related to family business governance.

Connect with Julien Lescs

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