Trump, trade, and geopolitics: What it means for business
The sequel to Trump’s first presidency could see more of the same on protectionism and geopolitical shocks, with the United States turning increasingly inwards. ...
Sustainability
Finance
‘Defiant Optimism’ is what is needed to bring about a more sustainable, inclusive world
Rethink traditional models of finance to achieve a sustainable and inclusive future, argues Durreen Shahnaz, founder & CEO of Impact Investment Exchange (IIX)....
We need to rethink traditional models of finance if we are to achieve a sustainable and inclusive future, argues Durreen Shahnaz, founder & CEO of Impact Investment Exchange (IIX).
I am a Defiant Optimist. I was the fourth daughter in my family, born into a society that did not celebrate the birth of girls. Given the culture and society that surrounded me, it became a passion of mine to figure out how to be treated equally and, as a girl, how my birth could be celebrated. Throughout my career, I’ve devoted my time to breaking down barriers and building bridges that connect the backstreets of underserved communities to the Wall Streets of the world.
In 2009, I founded IIX, a pioneer in impact investing. Based in Singapore, we focus on three key pillars that I believe are crucial to creating a better world: promoting gender equality, driving climate action, and building vibrant, resilient communities.
The global financial market stands at $132tn. Of that, only $8tn goes into socially responsible investing.
We need vision and courage to unlock sustainability and inclusion
In my experience, the core of power for positive change lies in two sectors – finance and the media. Finance has the resources to create reality, and the media has the rhetorical power to shape our perception of reality. Together they have the power to shape an equitable and sustainable future.
The global financial market stands at $132tn. Of that, only $8tn goes into socially responsible investing. So, what is this telling us? Yes, things are at last happening, but a lot more needs to be done to make a significant and lasting impact. We have the resources as a planet and as a people to address the most pressing challenges we face, and there is money – but it is what we do with it that matters. We need to have the vision and the courage to confront our reality and the courage to break away from the traditional models of financing.
There are many examples of thriving companies that are breaking away from traditional models, such as bKash, which is making financial inclusion a reality in Bangladesh, ATEC, whose induction stoves are empowering 800 million women in the Global South to turn decarbonization into income, and Sehat Kahani in Pakistan, which connects a network of predominantly female health professionals to patients.
These examples point to one conclusion: that systems designed to benefit a few must be transformed for the good of many. And guess what? If that happens, it will ultimately benefit all of us. We have to question the systems that have long excluded millions and dare to imagine building a more inclusive and just world.
Actionable solutions to unlock private sector wealth
We need actionable solutions to unlock a far larger side of private sector wealth.
My determination to connect undeserved communities to the Wall Streets of the world has led IIX to create the world’s first social stock exchange, the largest crowdfunding platform for impact investing (Impact Partners™), and innovative financial instruments, such as the award-winning Women’s Livelihood Bond Series™ (WLB™) Series, which has catalyzed $378m in private sector capital and directly impacted over four million people in seven countries at the last mile.
IIX has even introduced Orange Bonds (OBI), an entirely new asset class that is listed on the Singapore Stock Exchange (SGX). Named after the color of SDG 5 for Gender Equality, Orange Bonds represent the world’s first sustainable debt asset class designed by and for the Global South and the 99% as a solution to financing gender equality.
Recognizing the critical but often overlooked interconnectedness of SDG 5 across all 17 Sustainable Development Goals, Orange Bonds are also a cross-cutting asset class working at the nexus of gender equality and climate action to drive economic prosperity, planetary resilience, and sustainable peace. As part of the larger Orange Movement™, the Orange Bond Initiative™ has an audacious goal: to unlock $10bn by 2030 to empower 100 million women, girls, and underserved communities worldwide.
Earlier this month, the Government of Bangladesh announced its intention to introduce Orange Bonds as a transformative financial instrument to catalyze economic recovery, inclusive growth, and sustainable peace in Bangladesh. The initiative seeks to mobilize up to $1bn across a series of bonds, channeling much-needed investments to strategic sectors essential for long-term stability and inclusive growth, such as ready-made garments (RMG) and agriculture, while promoting micro, small, and medium enterprise (MSME) development.
Thanks to our work, millions of women and thousands of entrepreneurs, investors, governments, and impact stakeholders worldwide have had the opportunity to contribute to sustainable development and women’s empowerment.
“Take a moment to reflect on the field you’re in and the job you’re doing.”
How will you show up as a Defiant Optimist?
My question to you as a leader is how will you show up as a Defiant Optimist? Take a moment to reflect on the field you’re in and the job you’re doing. Now ask yourself: How can you reimagine and redefine it to make it truly inclusive and sustainable? I urge you to take with you the courage to reshape your company for inclusion or sustainability. Whether you are in finance, governance, or the media, you are deeply entrenched in a system that is not serving the 99% – but you have the power to change it and be a Defiant Optimist.
I therefore call on you to sign the Orange Pledge and join the Orange Movement™, that places accountability and impact at its core. Together, let’s create a legacy of courage, resilience, and positive impact. The world needs you to paint it Orange.
This article is inspired by a keynote session by Durreen Shahnaz, founder and CEO of IIX, at IMD’s signature Orchestrating Winning Performance program, Singapore (2024), which brings together executives from diverse sectors and geographies for a week of intense learning and sharing with IMD faculty and business experts.
Authors
Related
Taking proactive steps to guard against loss of US markets
A balanced assessment of the past eight years is that, in terms of trade policy, America has turned protectionist, implementing significant measures to restrict domestic market access to foreign (non-US) imports....
The next US administration must reassure China, not just deter it
During a recent Oxford debate organized by Asia Society Switzerland, experts sparred over how the next US administration should frame policy on China....
Why multinationals are betting on India
As the world’s largest democracy prepares to overtake China in terms of economic growth, it offers a huge investment opportunity, explains IMD’s Richard Baldwin....