Investing in Women in Leadership: Results Driven, Sustainable Impact Investing

Dec 11, 2024 9:00 AM ET

by Patricia Lizarraga, Hypatia Capital and WCEO ETF

When Hypatia Capital started investing in women in leadership, in 2007, there were only 10 women CEOs in the S&P 500. Today there are 50. Why is investing in companies with women who are Chief Executive Officers, considered impact and sustainable investing? Because they bring increased economic output, inclusivity, and performance. Before we look at what we gain by investing in women in leadership, lets measure what we lose by not including women fully in the economy. Women represent close to 50% of the population but only 47% of the workforce. Every year, McKinsey and Lean In publish the Women in the Workforce report. This research shows that, if women were full participants in the economy, global GDP could increase by $12 trillion by 2025. To reach that higher sustainable growth rate, it is imperative that we develop more inclusive organizations and institutions. How? By having more inclusive leadership.

Are Women More Inclusive Leaders? Inclusive leadership values and includes people from a variety of backgrounds and perspectives. The data tells us women are more inclusive leaders. Women CEOs have senior leadership teams that are 80% more diverse than men CEOs. Women CEOs have senior leadership teams that are 36% women, versus 20% women in men’s senior leadership teams. While women CEOs have senior leadership teams are two-thirds men, it is clear they are making greater strides in bringing more points of view into the leadership suite. Hypatia Capital believes this gender-balanced vision at the top trickles down throughout organizations benefiting your sister, your daughter, your mother, your friend. We believe having more women CEOs is the fastest and most certain way to get women more equal opportunity in their workplaces.

Read Patricia's full article including why she launched the WCEO ETF, the first exchange-traded fund focused solely on public companies led by women CEOs, which invests in small caps, medium caps and large caps, all here - https://greenmoney.com/investing-in-women-in-leadership-results-driven-sustainable-impact-investing

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