Why the future of financial inclusion could be orange

Through the WLB Series, women in underserved communities are connected to financial markets. This empowerment extends beyond individuals, benefiting society through the skills and contributions of these empowered women. The WLB Series demonstrates that finance for the 99% can be sustainable and transformative. WLB 5 closed in December 2022, raised $50 million, and is the world’s first Orange Bond. At US$100 million, WLB6 is due to come out before the end of the year.  

The dawn of Orange Bonds: catalyzing change 

As a new asset class, the Orange Bond aims to use the bond market to accelerate gender equality and leverage empowerment for positive climate action. At the heart of Orange Bonds lie the United Nations’ Sustainable Development Goals (SDGs), which offer a powerful framework for reshaping our world. Orange Bonds are so named for the color of SDG 5, Gender Equality. With the emergence of Orange Bond issuances and the support of international organizations and development banks, the orange movement is rapidly gaining momentum.  

Channeling this momentum is the Orange Bond Initiative (OBI), initiated by IIX on International Women’s Day 2022. The OBI endeavors to mobilize $10 billion in capital and empower 100 million women, girls, and gender minorities by 2030. It represents a pivotal moment in pursuing gender equality and intersectional action – particularly climate change. An estimated 75,000 individuals from around200 companies have signed the Orange Bond Pledge, an acknowledgement of the urgency of accelerating gender equality and taking intersectional action.  

In the Orange Bond movement, transparency and impact measurement are paramount, ensuring the proceeds are utilized to address the orange impact effectively. To overcome these challenges, we set up IIX Values, a data-powered technology platform that facilitates measuring, monitoring, and managing social and environmental impact and risks until the last mile. 

This balances the traditional finance equation of risk and return, introducing a third pillar – impact. This progressive Risk-Return-Impact (RRI) model is demonstrated by the WLB Series, which has posted a strong financial performance while meeting or exceeding all impact performance targets.  

Building a new table: the power of inclusion 

The financial system has long been plagued by exclusion and a disregard for the needs of marginalized communities. The metaphor of “building your own table and offering everyone a seat” epitomizes the ethos of Orange Bonds. By embracing diversity, intersectionality, and inclusion, Orange Bonds empower underrepresented entrepreneurs, particularly women-led businesses and impact enterprises. Inspired by the vision of a future where economic prosperity is intertwined with social and environmental well-being, the orange movement seeks to create a financial system that celebrates diversity, the delicate balance of life, and equal opportunities for all. As we build our own table and extend an invitation to everyone, we can reshape the financial landscape. Orange Bonds embody this spirit of audacity, of defiance, challenging traditional norms, and paving the way for a new era in finance. 

As individuals, investors, and institutions, we have a choice. We can either perpetuate the existing systems of exclusion and inequality or embrace the defiant optimism of Orange Bonds and actively participate in reshaping the financial landscape for the better. The future of financial inclusion lies in our hands, and by embracing the principles of diversity, inclusion, and sustainable impact, we can create a thriving future where everyone has the opportunity to succeed. Let us unite in this journey and unleash the power of Orange Bonds to build a better world for all.