Screening and due diligence

During screening and due diligence gender-related data can be collected and analysed to determine whether a deal qualifies under the 2X Challenge criteria and identify business performance gender opportunities and risks. For example, a company could be selling a product targeted to women, but is designed by a majority-male team. Without equal representation of their consumer base, the company risks designing a product ill-equipped to meet consumer needs. Gathering gender data is therefore key to understanding the potential investee company.

• Sector specific DD questions
  Gender-related questions may vary by sector, as do gender risks and opportunities. The sector briefs for Financial Institutions, Healthcare, Education, Off-grid Solar, Food and Agriculture, Manufacturing, Infrastructure, Construction and Real Estate provide sector specific questions that can be asked during screening and due diligence as well as sector-related statistics on gender.
• Evaluating gender diversity across the workforce
  The Gender Diversity and Inclusion Questionnaire helps companies and investors identify key challenges and opportunities to strengthen gender diversity and inclusion in the workplace. These questions are also aligned with 2X Challenge and IRIS+ indicators.
• Laws and regulations to consider
  It is also important to understand the landscape of the potential investee company, and how gender roles and regulations are shaped across culture and law. The Gender Laws and Regulations Note outlines gender-responsive laws and regulations across the value chain that can impact businesses.
• ESG risks and opportunities
  Evaluation of gender risks is also a critical part of the investment process. Gender risks can exacerbate existing gender disparities and have serious negative consequences for a company. The guidance note Mapping gender risks and opportunities for investors in Africa and South Asia identifies key gender-related risks and opportunities under the IFC Performance Standards. This document aims to highlight the most important risks to women and girls and provides a practical tool to help ESG specialists prioritise risk issues during due diligence.

  The publication, Addressing Gender-Based Violence and Harassment – Emerging Good Practice for the Private Sector, provides comprehensive guidance on emerging best practices to prevent and respond to the risk of violence and harassment. This was developed in partnership with EBRD and IFC to support the private sector to address gender-based violence and harassment.

  More information on identifying and addressing ESG risks, including gender-based risks can be found on the BII ESG Toolkit for Fund Managers.

The Investor Guidance Note aims to guide Investment Officers in their analysis of gender data and outlines examples of gender-specific opportunities throughout the value chain.

Additional guidance and tools for conducting gender due diligence can be found in Private Equity and Value Creation: A Fund Manager’s Guide to Gender-smart Investing.