The \u201c2X Challenge\u201d was launched at the G7 Summit 2018 as a commitment by DFIs to collectively mobilize $3 billion in private sector investments that provide women in developing country markets with improved access to leadership opportunities, quality employment, finance, enterprise support and products and services that enhance economic participation and access. This is relevant to consider as land-use projects (sustainable agriculture, forestry, restoration) will often take place in countries and regions where women lack equal access to financial services, land tenure, and\/or job security.<\/p>\n
The 2X Criteria were developed in 2018 to help 2X Challenge members identify which transactions could be reported towards the common $3 billion target in investments that benefit women and are linked to multiple SDGs and Targets of the GBF. This indicator also links to Strategic Objective 2 of the UNCCD and SBTN Land Use target on landscape engagement.<\/p>\n
Since their launch, the criteria have emerged as a go-to standard for gender lens investing for DFIs and other investors. In order to not duplicate effort and reinvent indicators for gender lens investing, we believe it is most efficient to point to the 2X Challenge Criteria in this overarching metric rather than bring them into the Directory individually. This indicator was added in August 2023.<\/p>\n","methodology":"
Users should first review the 2X Challenge Criteria and familiarise themselves with the Reference Guide to their use. Next, working with existing data on funded project where possible, and approaching project leads if needed, users should assess if projects meet any of the 2X Criteria. Ideally, we would recommend integrating a pre-investment assessment of the project against 2X Criteria as part of the screening and due diligence phase, and then reviewing this in a yearly basis after an investment is made.<\/p>\n
Whether or not projects hit the 2X Challenge criteria, we would also recommend that a Gender Action Plan is developed for the investment \u2013 either to bring the project to a point where it does meet one or more of the 2X Challenge criteria, or to help the project to continue to progress and fulfil more criteria.<\/p>\n
To aggregate this indicator at a portfolio level, we would advise calculating the percentage of investments in the portfolio which hit one or more of the 2X Challenge Criteria.<\/p>\n
<\/p>\n","communication":"
When reporting at a portfolio level, it may be helpful to specify the proportion of projects which hit each of the five 2X Challenge Criteria (Entrepreneurship, Leadership, Employment, Consumption, and Investments). This would enable assessment of whether investments are skewed towards some criteria more than others.<\/p>\n
Gender lens investing often focuses on counting women, which may overlook opportunities to highlight or enhance women\u2019s value, both intrinsically and to investees and society at large. In addition to quantitative criteria that measure how investees include women, the 2X Challenge Criteria recommends qualitative criteria that measure how Investors\/FIs and investees value women.<\/p>\n","considerations":[{"text":"Investees might not meet the 2X Challenge Criteria on investment, but may progress towards it over time, by putting in more support for female employees, and promoting female talent. If investees don\u2019t reach the 2X Criteria on investment, it should be recommended that they develop a Gender Plan of Action. The 2X Criteria aims to encourage investees to empower women beyond the norm for their sector and geography. Setting the bar too low risks approving \u2018business-as-usual\u2019 transactions while setting the bar too high risks discouraging investees from trying. "},{"text":"The criteria provide a backbone for gender investment analysis, but each transaction is specific and deal teams should be able to slightly adapt the thresholds on a transaction-by-transaction basis wherever it is necessary to encourage change or recognize investees making transformational efforts to empower women. Some criteria vary by sector, given the wide range of 2X Investor\/FI activities and sector-specific dimensions in women\u2019s representation, but the 2X Challenge guidance acknowledges that there will be other considerations to keep in mind. "}],"resources":[{"link_text":"2X Challenge Criteria, and Reference Guide","link_url":"https:\/\/www.2xchallenge.org\/criteria"},{"link_text":"2X Collaborative Green Toolkit ","link_url":"https:\/\/www.2xcollaborative.org\/2x-green-toolkit"},{"link_text":"Land Use Finance Hub webinar on gender lens investing","link_url":"https:\/\/kpi-directory.shared-api-01.production.linode.unep-wcmc.org\/wp-content\/uploads\/2022\/06\/Info-Brief_Gender-webinar.pdf"},{"link_text":"CBD \u2018Best Practices In Gender And Biodiversity: Pathways for multiple benefits\u2019","link_url":"https:\/\/www.cbd.int\/gender\/publications\/CBD-Best-practices-Gender-Biodiversity-en.pdf "},{"link_text":"UN-WOMEN","link_url":"https:\/\/www.unwomen.org\/en"},{"link_text":"IDH Gender toolkit ","link_url":"https:\/\/www.idhsustainabletrade.com\/uploaded\/2022\/01\/Gender-Toolkit-with-Guide-1.pdf"},{"link_text":"ADB, \u2018Preparing a Gender Action Plan\u2019 ","link_url":"https:\/\/www.adb.org\/sites\/default\/files\/institutional-document\/34132\/files\/tip-sheet-2-preparing-gender-action-plan.pdf "},{"link_text":"WOCAM W+ standard","link_url":"https:\/\/www.wplus.org\/ "},{"link_text":"Women\u2019s Empowerment Principles","link_url":"https:\/\/www.weps.org\/"}],"links_to_other_impact_area_kpis":"
Biodiversity \u2013 BIO 04<\/p>\n
Climate Action \u2013 CMA 01, CMA 04<\/p>\n
Forests \u2013 FOR 02, FOR 03<\/p>\n
Livelihoods and Gender \u2013 LG 01, LG 02, LG 03<\/p>\n
Sustainable Production \u2013 PRO 03, PRO 04<\/p>\n","case_studies":"
This indicator was initially developed and used by fund AGRI3 in its E&S framework. In their Impact Indicators Guidelines, IFACC include an indicator titled \u2018Number of direct beneficiaries (detailed by gender)\u2019, which is a broader formulation likely to encompass indicator LG 04. In line with this indicator, GIIN\u2019s Impact Performance Agriculture Benchmark also asks investors to report on the percentage of female clients.<\/p>\n","requirements":{"spatial_data":false,"project_specific_criteria":true,"on_the_ground_verification":true},"download":"https:\/\/kpi-directory.shared-api-01.production.linode.unep-wcmc.org\/wp-content\/uploads\/2023\/08\/V2-LG-04-Fund-Transaction-Meets-One-or-More-of-the-2X-Challenge-Criteria-for-gender-lens-investing.pdf"},"yoast_head":"\n